In an unexpected move that has stunned many in the industry, Unilever has appointed Fernando Fernandez as its next chief executive, following the sudden departure of current CEO Hein Schumacher.

Scheduled to step down as chief executive by 1 March – by “mutual agreement” – and leave the business entirely by 1 May, Schumacher’s swift exit has left the FMCG world scratching its head and searching for answers. Such abrupt leadership changes are rare, especially following a period of solid performance, raising questions about the board’s strategy and the pressures at play.

Yet, while Schumacher’s abrupt resignation may have come as a surprise, Unilever’s choice of Fernandez Fernando as its next CEO has not.

A company veteran with over 37 years of experience at Unilever, CFO Fernandez is stepping into the top job at a crucial time, as Unilever aims to navigate its strategic transformation. But what does his appointment signal for the company’s future? Will he continue Schumacher’s transformation agenda, or will his deep ties to Unilever drive a different approach?

We caught up with industry analysts to find out just who this new CEO is, and what his leadership might mean for the business.

Schumacher’s exit

Unilever announced on Tuesday that current chief executive Schumacher will step down as CEO on 1 March 2025, a mere year and a half into his role.

His resignation comes in the middle of his own turnaround plan, which included Unilever’s cost-cutting growth action plan (GAP), the demerger of its ice cream division and the moving of the corporate headquarters to Amsterdam.

The move comes just days after Unilever released its full year results – revealing that in 2024 profits rose by 12.6% to €11.2bn, while sales grew 4.2%. Given those positive figures, Schumacher’s exit has taken many by surprise.

While his departure was said to have come by “mutual agreement” with the board, the speed at which the sudden decision appears to have been made has caused widespread speculation within the industry.

Photo: Schumacher is to step down as Unilever CEO, less than two years after he was first appointed

Former Unilever vice president for marketing, and founder of Pecorino Group, Ian Maskell described the move as unexpected. He said: “No one in my network was expecting this, so it’s a bit of a sidewinder. But we live in crazy, uncertain times.”

Reports have already begun to describe Schumacher’s withdrawal as a forced “oust”, with industry sources telling Reuters that the board was “unified in its decision” in its determination for a “speedier leader”.

Others suggest Schumacher leadership style may have fallen out of favour with the board, and possibly with influential key investor and non-executive board director Nelson Peltz. The two crossed paths at H.J. Heinz,  in January 2023, and it is understood that it was the approval of Peltz which helped cinch Schumacher’s appointment as chief executive, despite him being an outsider to Unilever. This came as a contrast to his predecessor, Alan Jope, who had spent 38 years at the company.

Yet, despite the unexpected nature of Schumacher’s departure, the appointment of Fernandez has been met with less surprise. Many within Unilever see him as a safe, logical choice, given his deep experience within the company.

Who is Fernando Fernandez?

Succeeding Schumacher is current chief finance officer Fernando Fernandez, a Unilever veteran with nearly four decades of experience across multiple leadership roles at the company.

Photo: Analysts say one advantage Fernandez has as an insider is his relationships across the business – Fernandez centre

After studying economics at the University of Buenos Aires, Fernandez started his career at Unilever in Argentina in 1987 at the age of 21, as a production costs’ analyst.

Fernandez is a safe choice. He knows Unilever inside and out, and that stability could be exactly what the company needs right now.”

Photo: Fernandez’s career spans over 35 years at Unilever across several markets

Working his way up, Fernandez went on to hold key positions including president of Beauty & Wellbeing, and CEO of Brazil and the Philippines, before being appointed CFO in January last year.

His tenure in the Beauty & Wellbeing division saw strong performance, playing a crucial role in shaping the company’s ongoing growth action plan and cost-cutting strategies.

Asked why he wanted to join Unilever, Fernandez said it was the global reach of the company that attracted him to the role.

The 58 year old said: “I love the incredible amount of learning potential that you have access to at Unilever if you wish to grab it.

“I was excited by the possibility of being exposed to so many cultures, geographies, markets (both developed and emerging), categories and brands. There aren’t many companies that have the same breadth and truly global reach.”

The incoming CEO has also previously described himself as an “enabler”, aiming to become a simplifier in service to the organisation and our people.”

Maskell, who worked alongside Fernandez when he was president for Latin America described the executive as “a proven Unilever force.”

Maskell said: “He’s extremely well respected. He’s a solid finance guy, an operator—he makes things happen. There’s some speculation that he has a good relationship with Nelson Peltz [the activist investor on Unilever’s board], although I can’t confirm that. But I’ve heard that said. He and Peltz are both finance guys, so that could be a factor in his appointment.”

Likewise, Hargreaves senior equity analyst Matt Britzman noted while the senior management shake-up came as a surprise, it could be a positive move for Unilever.

Britzman added: “Unilever’s shakeup at the top was a surprise, given it comes during a turnaround effort. But we can see some merit to the new board wanting to put its own name in the CEO seat. Fernandez knows Unilever inside and out, and with a mandate to push on with the transformation, we think this could be a positive move.”

What will Fernandez bring to the role?

With a deep understanding of Unilever’s operations and portfolio, Fernandez is expected to continue the company’s strategic reset.

In his new role at the helm of the global consumer goods giant, Maskell said Fernandez is expected to maintain focus on Schumacher’s cost-cutting initiatives, and on driving efficiency.

Elsewhere, Briztman added, the executive will need to streamline the group’s product portfolio to focus on high-margin brands, as well as expand Unilever’s presence in emerging markets.

Given his background in the Beauty & Wellbeing division , some have speculated that Fernandez might prioritize growth in that area. However, Maskell noted: “Every Unilever CEO prioritizes Health & Beauty because it’s high-margin. Food, by contrast, is often seen as a bit of a millstone around the CEO’s neck because it’s lower-margin.

“The ice cream business, now being divested, was part of that challenge. So yes, he’ll focus on Beauty & Wellbeing, but not necessarily because it’s Fernandez—any CEO would. It’s low hanging fruit.”

Photo: New CEO Fernandez will have all eyes on him, as he attempts to deliver Unilever’s growth action plan and achieve predecessor Schumacher’s goals

His Latin American background could also be a strength, with Maskell adding:” He knows the emerging markets well, and that’s a big part of Unilever’s growth strategy. His understanding of Latin America will help drive that.”

Yet, there are also key challenges Fernandez will be keen to overcome. These include delivering consistent growth amid economic uncertainty, executing the Ice Cream demerger smoothly, and managing activist investor pressures, particularly from influential figures such as Nelson Peltz.

Likewise, Fernandez will also be juggling relationships across the company —a challenge that perhaps Schumacher, who joined as an ‘outsider’, might have struggled with.

Maskell explained: “The irony is that Fernandez will face exactly the same challenges that Schumacher was dealing with. Growth is the big one, and that’s easier said than done. But one advantage Fernandez has as an insider is his relationships across the business.

“Schumacher was seen by some as a ‘puppet CEO’ for Nelson Peltz, and that may have made it difficult for him to maintain key relationships.”

Final Thoughts

In yesterday’s board announcement, Unilever insisted the new appointment will not impact the company’s forecast for the year ahead and that it remains fundamentally strong. However, the CEO change will naturally add an element of uncertainty.

Maskell said: “We live in a very volatile world these days. But Fernandez is a safe choice. He knows Unilever inside and out, and that stability could be exactly what the company needs right now.”

The coming months will be crucial as Fernandez steps into the CEO role and works to deliver on Unilever’s transformation plans.

So far, investors have reacted cautiously, with shares dropping only 2.7% in early trading. However, Fernandez’s experience in portfolio management and performance-driven leadership may be the very ingredient Unilever was missing to maintain momentum and excel in 2025 and beyond.