Unilever CEO Paul Polman retires shortly after HQ move debacle, Alan Jope appointed successor

29 Nov 2018 --- Unilever has appointed a new CEO, Alan Jope, who moves into the position in the new year following the retirement of Paul Polman who has been the Chief Executive of the British-Dutch multinational for more than a decade and worked in the consumer goods industry for almost 40 years. Polman’s retirement comes shortly after Unilever’s restructuring plan was scrapped following shareholder criticism.

The company has headquarters in both Rotterdam and London but proposed to change this structure to be based solely in the Netherlands.

In March, the consumer goods giant said it was simplifying the company’s corporate structure into a single legal entity in the Netherlands – chosen as the best location to transform Unilever into a “single, agiler and focused business.” 

Unilever has been weighing up whether to headquarter in the UK capital or Rotterdam for quite some time, sparking debate over the impact that Brexit is having on business decisions.

But this decision didn’t go down too well with shareholders and last month Unilever decided to withdraw its proposal to simplify the dual-headed legal structure. A move out of the UK would have removed Unilever from the FTSE 100 index and relocation could have led to British investors being forced to sell their shares.

Unilever had consulted with shareholders and said it received “widespread support for the principle behind simplification.” However, the proposal had not received support from a “significant group of shareholders” and Unilever, therefore, considered it appropriate to withdraw. 

Unilever says that following Polman’s decision to retire, Alan Jope, currently President, Beauty & Personal Care, has been appointed to the position, effective January 1, 2019. Polman is to support the transition process during the first half of the year. 

During Polman’s tenure, the company has delivered consistent top and bottom line growth ahead of its markets, according to Unilever.

“Unilever’s focus on successfully pioneering a new model of sustainable growth has served the needs of its many stakeholders and created excellent returns for its shareholders, delivering a Total Shareholder Return of 290 percent over that period,” says the company announcement. 

“Paul is an exceptional business leader who has transformed Unilever, making it one of the best-performing companies in its sector, and one of the most admired businesses in the world,” says Unilever Chairman Marijn Dekkers.

“His role in helping to define a new era of responsible capitalism, embodied in the Unilever Sustainable Living Plan, marks him out as one of the most far-sighted business leaders of his generation.” 

“Paul’s vision, drive and performance focus, combined with his commitment to serving the best long-term interests of the company, have materially strengthened Unilever. He leaves a more agile and resilient company, well placed to win in this fast-changing, dynamic industry.”

Alan Jope, 54, has led Beauty & Personal Care, Unilever’s largest division, since 2014 and has been on the company’s Leadership Executive since 2011. He has an excellent track record of leading Unilever’s business in both developed and emerging markets, having run the company’s North Asia business for four years, served as President, Russia, Africa & Middle East. He has also spent more than a decade in senior roles in Foods, Home Care and Personal Care for Unilever US. Alan joined the company as a graduate marketing trainee in 1985. 

“After a rigorous and wide-ranging selection process, the Board is delighted to appoint Alan to the role,” adds Dekkers. “Having worked for Unilever in a variety of senior management roles, Alan has a deep understanding and experience of our business, the industry, and the markets in which we operate. He is a strong, dynamic and values-driven leader with an impressive track record of delivering consistent high-quality performance.” 

Polman will retire as CEO and as a Board member on 31 December. After supporting the transition process, he will leave the company in early July. 

“I congratulate Alan on his appointment and look forward to working with him on the transition,” Polman says. “Having worked closely with Alan for many years, I am highly confident that under his leadership, Unilever will prosper long into the future. His appointment demonstrates the strength of Unilever’s succession planning and talent pipeline.”

“It has been an honor to lead Unilever over the last 10 years. Throughout this time, I have been humbled by the commitment and hard work of our people, and their passion for creating a truly purpose-driven company. I am very grateful to them, as I am to Unilever’s many other stakeholders, with whom we have worked to build our long-term, sustainable business. I look forward to engaging with many of these partners – in a different capacity – to help address the many environmental and social challenges facing the world.”