Unilever: Schumacher Out After 18 Months
Hein Schumacher’s departure from Unilever in early 2025 raised eyebrows—and share prices dipped soon after. Appointed in July 2023, Schumacher was an external hire from the dairy industry who was brought in to sharpen Unilever’s execution and boost sluggish growth.
Why He Was Let Go
- Underperformance: Unilever’s revenue growth and market share lagged behind competitors like P&G and Nestlé.
- Strategic Delays: His plan to spin off the underperforming ice cream division (which includes Ben & Jerry’s) stalled. A cost-cutting initiative fell short of its job reduction target.
- Cultural Fit Issues: As an outsider, Schumacher reportedly struggled to win internal support or move quickly on bold decisions.
- Investor Pressure: Activist investor Nelson Peltz had been vocal about the need for faster action, possibly influencing the board’s decision.
What’s Next
Fernando Fernandez, a Unilever veteran, stepped in on March 1, 2025, with a mandate for speed and sharper execution. Expect faster portfolio optimization, a focus on high-growth categories like skincare and wellness, and likely acceleration in digital product innovation and sustainable packaging.
CVS Health: Lynch Ousted Amid Financial Pressure
In a surprising shakeup, CVS Health CEO Karen Lynch was dismissed in November 2024. While Lynch had led the company through a major strategic evolution—including the acquisitions of Signify Health and Oak Street Health—her departure reflects growing board impatience with underwhelming financials and execution risk.
Why She Was Let Go
- Rising Medical Costs: Health insurance claims exceeded expectations, hitting profitability hard.
- Integration Challenges: CVS’s shift into value-based care brought growing pains and unclear ROI on recent acquisitions.
- Activist Agitation & Board Concern: Investors were reportedly concerned about the speed of CVS’s transformation into a healthcare company.
What’s Next
David Joyner took over as CEO, bringing deep operational expertise. Innovation at CVS may now lean away from splashy M&A and toward more focused, executional bets—think AI-driven pharmacy automation, personalized health journeys, and efficiency-led digital health offerings. Expect restructuring, likely more layoffs, and a recommitment to ROI-based innovation.
Estée Lauder: Freda Set to Retire Amid Performance Slump
After 16 years at the helm, Estée Lauder CEO Fabrizio Freda announced he would step down at the end of fiscal 2025. While technically a retirement, many in the industry view this as a gentle push prompted by recent missteps.
Why He’s Out
- China Dependency: Heavy reliance on the Chinese market backfired as recovery stalled post-pandemic.
- Overexpansion: The company’s prestige beauty portfolio became bloated, with unclear differentiation.
- Slow Digital Pivot: Estée Lauder was late to fully embrace DTC and digital-first marketing, especially compared to competitors like L’Oréal and Fenty Beauty.
What’s Next
The incoming CEO will face pressure to revamp the innovation pipeline. That means simplifying the brand portfolio, doubling down on AI-driven skincare personalization, and repositioning the company for Gen Z consumers. Expect a tech-forward pivot, more influencer-led marketing, and renewed investment in experiential retail.
Campbell Soup: Clouse Retires but Questions Linger
Mark Clouse, CEO of Campbell Soup Company since 2019, stepped down in early 2025 to become president of the NFL’s Washington Commanders—a move framed as a “retirement,” though some analysts suggest pressure had been building due to underwhelming stock performance.
Why It Matters
- Campbell had recently acquired Sovos Brands (owner of Rao’s), betting big on premiumization. But integration questions and consumer budget tightening put pressure on margins.
- Innovation under Clouse had been cautious. Stakeholders now want bolder moves.
What’s Next
New CEO Mick Beekhuizen is expected to focus on product innovation, supply chain optimization, and value-focused offerings. Watch for new format experimentation and growth in functional and health-forward foods.
The Broader Pattern: Why Now?
Across the board, a few themes emerge:
- Investor and Board Impatience: Investors want innovation, but they want it fast and profitable. The days of five-year strategic roadmaps are over.
- Execution Over Ideation: Boards are prioritizing operators over visionaries. The new mandate is execute faster, simplify portfolios, and hit financial targets.
- Underperformance vs. Peers: When companies trail competitors in share price, market share, or innovation velocity, leadership is now swiftly replaced.
What Does This Mean for Innovation?
Far from stifling innovation, these shakeups could accelerate it—but only if paired with the right leadership mindset.
- Innovation will be faster, leaner, and ROI-driven.
- Expect less moonshot R&D, more agile experimentation.
- Personalization, AI, and sustainability will dominate pipelines.
- Partnerships with startups and tech firms will rise as companies seek new ideas without long-term risk.
Boards are sending a clear message: Innovate smart, execute fast, or step aside.
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