Unilever Reshuffles Leadership: Fernando Fernandez Named CEO, Srinivas Phatak Steps in as Acting CFO
Unilever said CEO Hein Schumacher will resign from his role on May 31, 2025, after serving the company since January 2023. The move, which was termed as a mutual decision, will have CFO Fernando Fernandez take over as CEO, while Deputy CFO and Group Controller Srinivas Phatak will act as CFO from March 1, 2025.
Schumacher, who received a guaranteed annual salary of 1.85 million euros, will be paid his current compensation until he leaves. Looking back on his Unilever experience, he was proud of the company's development, citing accomplishments including strategic resets, the introduction of a productivity program, and the launch of the Ice Cream business separation. He was optimistic about Unilever's future, attributing the company's successful leadership team and well-defined strategic vision to continued growth.
Fernando Fernandez, the current CFO and Executive Director of Unilever, will take up the role of CEO on March 31, 2025, with a guaranteed annual salary of 1.8 million euros. Fernandez has had a long history of leadership experience in Latin America, Brazil, and the Philippines, as well as having a successful tenure as President of the Beauty & Wellbeing division. During his tenure, these markets turned out to be among Unilever's strongest-performing markets with good financial performances and talent development.
As Fernandez moves to the role of CEO, Srinivas Phatak will assume the position of acting CFO. Phatak has been with Unilever for years and is currently Deputy CFO and Group Controller. The firm has already begun an internal and external search for a permanent CFO. In spite of the leadership transition, Unilever assured stakeholders that its 2025 financial guidance and medium-term guidance are unchanged.
Unilever's Chairman, Ian Meakins, recognized Schumacher's achievements, lauding his initiative in re-shaping the company's strategy and accelerating financial advancements throughout 2024. Meakins also mentioned Schumacher's initiative to launch the Growth Action Plan (GAP), which steered Unilever towards enhanced performance, and his management of the productivity program and the Ice Cream business divestment. The Board was grateful for Schumacher's leadership and wished him well for the future.
The leadership change arrives in the midst of Unilever's subdued 2024 financial results. The net profit of the company decreased by 12.31% to 5.7 billion euros from 6.5 billion euros in 2023, as the company's turnover rose 1.9% to 60.8 billion euros. The decline in profit was caused by restructuring expenses related to the fast-track productivity program and the withdrawal of the company from the Russian market. Unilever disposed of its Russian affiliate to the Arnest Group in October 2024, marking the official closure of its business in the country.
In spite of these difficulties, Unilever continues on its strategic path. With Fernandez filling in as CEO and Phatak covering CFO temporarily, the corporation is set on implementing its strategy for growth and capitalizing on the progress it has made through the last two years. These leadership shifts, although noteworthy, mark a reaffirmation of Unilever's purpose of propelling performance, innovation, and long-term success in the changing world economy.