Danone removes CEO Faber from chairmanship

Food multinational Danone on March 14 removed Emmanuel Faber as its chairman, barely two weeks after announcing that he would step down as CEO in response to pressure from investors dissatisfied with the company's performance over the last few years. He has been replaced by Gilles Schnepp, who was appointed to the Board of Directors in December 2020.

While Paris-headquartered Danone did not actually make a loss in 2020, it has seen a steady decline in its sales over the past decade and was one of the few major global food companies to see a drop, rather than an increase, in sales last year.

Faber has been with Danone for over 24 years, holding various regional and global positions including Chief Financial Officer and Vice President, Asia Pacific. He took the position of CEO in 2014 and the chairmanship in 2017. However, he was criticized for his failure to turn around the company's sales despite various strategies including a shift towards non-dairy products, a move to make its supply chain and operations more environmentally friendly, and a restructuring that resulted in the company laying off 2,000 staff last year.

He still holds the CEO position while the company searches for a successor. According to one Reuters report, the Board of Directors has already shortlisted eight potential candidates and the new CEO may be appointed by the end of the year.