Nestle’s Polman appointed Unilever CEO

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Mumbai, Sep 4: In a surprise move, FMCG giant Unilever on Thursday announced its decision to appoint Paul Polman, currently executive vice president and zone director for the Americas at Nestlé SA, as group chief executive to succeed Patrick Cescau. Normally, the company promotes its home-grown talent to top slots, but has now settled for an outsider from arch-rival Nestlé.

After serving the business for over 35 years, Cescau will be retiring at the end of 2008.

Polman will be proposed for appointment at the extraordinary general meeting (EGM) to be convened during autumn and will take over as group chief executive following an orderly transition, a press statement from Unilever said. At present, Unilever has around 1,74,000 employees in 100 countries across the globe. It has generated annual sales of euro 40 billion in 2007. Its portfolio includes brands such as Flora, Bertolli, Dove, Lux, Pond’s, Lynx, Sunsilk, Persil and Domestos among others.

According to industry analysts, Unilever’s announcement comes as a real surprise as it has opted for an external appointment, that too, from its competitor Nestlé. “In 2005, Unilever opted for a new structure by appointing a CEO - Patrick Cescau. Contrary to media speculations, it has now settled for Nestlé’s blue-eyed boy. Generally, Unilever promotes its home-grown talents to higher posts,” said an industry analyst based in Mumbai. Incidentally, Polmon, 52, is leaving Nestlé with immediate effect and will be replaced as executive vice president and head of zone of Americas by Luis Cantarell, who had been leading the Europe zone.

Announcing the news, Michael Treschow, chairman of Unilever said, “The performance of the business has improved markedly under Patrick’s leadership. Patrick leaves a substantial record on which to build. We are delighted that Paul Polman has agreed to join the business as he has all the attributes necessary to build on Patrick’s achievements and to lead Unilever into the next stage of its development.” Patrick Cescau joined Unilever in 1973 and was elected to the board as finance director in 1999. He became the company’s first ever `Group Chief Executive’ on the creation of that office in April 2005.

Patrick Cescau said, “Four years ago, we set out to transform Unilever and to get the business back on track. I believe that phase of work is largely complete, so now is exactly the right time to pass on the baton.”