Unilever, 888 and Legal & General all announced changes to chief executive roles on Monday, marking a day of “musical chairs” in boardrooms, said AJ Bell analyst Russ Mould.
Replacements at the top of FTSE-listed companies has become somewhat of a theme in 2023, with Vodafone, Rolls-Royce and Whitbread all having replaced chief executives.
Rightmove, Prudential and Hargreaves Lansdown have also announced they will are seeking a new boss.
Unilever business ‘step-up’
Hein Schumacher will replace Alan Jope as chief executive of consumer goods giant Unilever from July, potentially in response to pressure from activist investors – including Nelson Peltz.
Peltz was among investors to welcome Schumacher’s appointment, following his own rise to the board in July after he built a stake in the company to push for change.
Unilever chairman Nils Andersen said the new chief was “a dynamic, values-driven business leader,” while Schumacher himself suggested he was looking forward to leading a “step-up in business performance” at the company.
Mould said: “There are some important clues in Hein Schumacher’s biography as to the type of boss he might be.
“Unilever needs a clearer strategy, and it must achieve better organic growth.”
A change of leadership follows tension at Unilever, after UK fund manager Terry Smith criticised Peltz's acknowledgment from the board, claiming his own suggestions had been ignored for years.
Unilever's share price hit a five-year low of 3,328p last March, but has since risen back to 4,054p, growing 0.4% on Monday on the news of Schumacher's appointment.
888 controversy
Online bookmaker 888 announced the immediate departure of chief executive Itai Pazner on Monday, leading to a 28.5% slump in its share price.
888 also said it had suspended Middle Eastern VIP client accounts after an internal review found “best practices” hadn’t been followed and cases of money laundering had even been highlighted.
Jonathan Mendelsohn, chairman and interim boss, said: “When we were alerted to issues with some of 888’s VIP customers, the board took decisive actions.”
Speculation has it that Pazner’s sacking was a direct result of the review, though.
“A brief and to the point statement with the usual pleasantries doesn’t indicate the reason for his exit, leaving the obvious supposition that this debacle is to blame,” said Russ Mould.
The controversy marks new woes for 888, which confirmed earlier this month that top-line revenue was down 3% for the year and that its chief financial officer Yariv Dafna would be stepping down.
Legal & General long-term boss retires
Legal & General boss Nigel Wilson announced his retirement on Monday, meanwhile, bringing an end to over a decade of his leadership at the asset management and insurance company.
Wilson became chief executive in 2012 and was the thirteenth longest-serving FTSE100 boss, overseeing share price growth of some 140%.
Legal & General's shares were down 2.9% to 253p on Monday though, following the news that he will be replaced within the next year.
Wilson became chief executive in 2012, becoming the thirteenth longest-serving FTSE100 boss, seeing the company's share price grow some 140%.
Legal & General's shares were down 2.9% to 253p on Monday though, following the news that he will be replaced within the next year.