Unilever appointed Hein Schumacher to replace Alan Jope as CEO on July 1, a move that was welcomed by board member and activist shareholder Nelson Peltz.
Schumacher, 51, joined Unilever as a non-executive director in October of last year and is currently the CEO of the Dutch dairy company FrieslandCampina. His appointment is the first time Unilever has appointed a non-Unilever executive to the top job since poaching Paul Polman from Nestle in 2008.
Unilever, one of the world's largest consumer companies with over 400 brands ranging from detergent to ice cream, announced in September that Jope would retire at the end of 2023.
Schumacher, who previously worked for Royal Ahold NV, also spent a decade working for H.J. Heinz in the United States, Europe, and Asia.
Nelson Peltz, the billionaire activist investor who runs Trian Partners, said he strongly supports Schumacher "as our new CEO and looks forward to working closely with him to drive significant sustainable stakeholder value." Peltz joined the Unilever board of directors in July, after it was revealed early last year that he had built a stake in the company.
"I first met Hein when I served as a director at the H.J. Heinz Company from 2006 to 2013 and was impressed by his leadership skills and business acumen," Peltz said.
According to Refinitiv Eikon data, Peltz owns nearly 1.5% of Unilever through his Trian Fund, making him the fourth largest shareholder.
Unilever had considered both internal and external candidates for the position.
Finance chief Graeme Pitkethly, personal care division boss Fabian Garcia, and Hanneke Faber, who heads the company's nutrition group, were among the candidates, according to Reuters in October.
"It is good Schumacher has plenty of industry experience outside Unilever, particularly international," said Tineke Frikee, a fund manager at Unilever shareholder Waverton Investment Management.
"I note though that his background is mainly in food, rather than beauty and personal care. This may lead the market to reduce the probability of a potential food spin-off."
Ben & Jerry's ice cream, Colman's mustard, Hellman's mayonnaise, and Knorr stock cubes are all part of Unilever's food business.
Over the last year, some investors and analysts have speculated that Unilever might spin off its weaker food business to focus on personal goods, beauty, and home care.
Analysts at Jefferies and RBC Capital welcomed Unilever's appointment of an external CEO, predicting that the move will be well received by investors.
"We think Unilever needs a cultural and organisational shake-up," RBC analyst James Edwardes Jones wrote in a note.
Schumacher brings "frontline experience", analysts at Jefferies said.