Unilever names Nestle
Written on September 4, 2008
Unilever named company outsider Paul Polman, a veteran of its two biggest consumer goods rivals, as chief executive on Thursday in a surprise choice to revive its sluggish performance that sent its shares surging.
Polman, who missed out on the top job at the world’s biggest food group Nestle SA (NESN.VX: Quote, Profile, Research, Stock Buzz) last year, becomes the first new head of Anglo-Dutch Unilever Plc/NV (ULVR.L: Quote, Profile, Research, Stock Buzz) (UNc.AS: Quote, Profile, Research, Stock Buzz) not promoted from within the company in its 78-year history.
He will replace Patrick Cescau in early 2008, the company said.
A 52-year-old Dutchman, Polman spent 26 years at U.S. Procter & Gamble (P&G) (PG.N: Quote, Profile, Research, Stock Buzz) before moving to Swiss Nestle in 2006 as chief financial officer, but although seen as favorite for the top job there he was pipped by Nestle’s Americas region head, Paul Bulcke.
Polman was popular with investors after injecting a personal style and greater transparency into Nestle’s dealings with its big shareholders, and is highly regarded by analysts.
“Paul Polman is probably the best candidate in the world to become CEO of Unilever payday advance. With hindsight, he was probably the only logical choice,” said independent analyst James Amoroso.
“I think they’ve made an excellent appointment … They’ve really scored a home run here,” said Investec analyst Martin Deboo.
At 0920 GMT, Unilever Plc shares were up 6.1 percent at 15.81 pounds, topping the FTSE Eurofirst index of leading European shares, and London’s FTSE 100 index .FTSE. The Dutch shares rose 6 percent to 19.96 euros.
Filed in: economics.