In today’s fast-paced corporate landscape, executives are facing increasing pressure to deliver swift results—or risk being replaced, the Financial Times reports.
Recent shake-ups in leadership at major corporations, including Unilever, highlight the growing impatience of investors and boards demanding faster turnarounds.
Unilever, the multinational consumer goods company behind brands such as Dove and Ben & Jerry’s, recently made a surprise decision to dismiss its CEO, Hein Schumacher, after less than two years in the role. The company is undergoing a strategic transformation, cutting costs and preparing to spin off its ice cream division. However, the pace of change was deemed too slow by the board, which opted to replace Schumacher with CFO Fernando Fernandez.
The move signals mounting pressure from investors, including activist shareholder Nelson Peltz, to accelerate Unilever’s restructuring efforts. Reports indicate that a key point of contention was the decision to list the company’s ice cream unit in Amsterdam rather than the US, where Peltz had pushed for a primary listing.
Unilever’s leadership change reflects a broader trend across consumer goods companies. Industry giants like Nestlé and Krispy Kreme’s parent company, JAB Holding, have also appointed new leaders in recent months to drive strategic shifts.
While many investors have expressed concerns about Europe’s financial underperformance compared to the US, hedge fund D1 Capital Partners has found opportunity in the region. The New York-based firm posted a 44% return last year, largely due to its investments in European companies undergoing major restructuring.
D1 Capital made substantial gains from companies such as Siemens Energy, Rolls-Royce, and UniCredit, all of which have implemented significant cost-cutting measures or expansion plans. This strategy has also helped the hedge fund recover from previous losses in the tech sector, positioning it for renewed growth.
The push for competitive leadership has also led to rising executive salaries, particularly among London-listed companies. Traditionally, executive pay in the UK lagged behind the US, but attitudes are shifting as firms seek to retain top talent.
Several major corporations, including British American Tobacco and Compass Group, are proposing substantial salary increases for their executives. Meanwhile, firms such as the London Stock Exchange Group and Smith & Nephew have already secured shareholder approval for multimillion-pound pay raises.
Despite these increases, executive compensation in the UK still trails behind the US The median salary for FTSE 100 CEOs is £4.2 million, far lower than the average $16 million for S&P 500 executives. However, the trend suggests that British firms are increasingly willing to offer competitive pay to attract and retain leaders capable of driving rapid change.
