Danone needs new independent chairman instead of Faber, says investor Artisan

Danone needs new independent chairman instead of Faber, says investor Artisan

U.S investment company Artisan Partners on Wednesday said Danone needed to appoint a new, independent chairman, adding more pressure on Emmanuel Faber who is the French food company's current chairman.

FILE PHOTO: A company logo is seen on a product displayed before French food group Danone's 20
FILE PHOTO: A company logo is seen on a product displayed before French food group Danone's 2019 annual results presentation in Paris, France, February 26, 2020. REUTERS/Christian Hartmann/File Photo

PARIS: U.S investment company Artisan Partners on Wednesday said that Danone needed to appoint a new, independent chairman, adding more pressure on Emmanuel Faber who holds that position at the French food company.

This week, Danone said Faber - who until now has combined the CEO and chairman roles - would stay on as chairman and oversee the search for a new chief executive.

"With Mr. Faber as chairman, the incoming CEO will not have the appropriate latitude to set a new direction," wrote Artisan, which has a stake of around 3per cent in Danone.

Artisan Partners' letter to Danone's board of management echoed a similar position from investment company Bluebell, which also said Danone should appoint another independent chairman instead of Faber.

Activist investors say Danone - whose brands include Evian and Actimel - needs a management revamp as they believe that under Faber's tenure, Danone's sales growth, margins and share price have lagged rivals, including Perrier-owner Nestle and Unilever, the maker of Cornetto ice cream and Lipton tea.

(Reporting by Gwenaelle Barzic, Benoit Van Overstraeten, Sudip Kar-Gupta; editing by Jason Neely and Louise Heavens)

Source: Reuters

Bookmark