The Observer (UK): Unilever to 'do a Shell' in management shakeup: “Unilever, the Dove to Domestos consumer products group, is considering abandoning its long-standing practice of having joint chairmen following questions from shareholders in the wake of the Royal Dutch/Shell scandal.”: “That follows the decision of Royal Dutch/Shell to move to single ownership - ditching its dual company status and adopting a single board - in the wake of the scandal of its overbooking reserves. While Unilever has had a run of poor results this year, culminating in a profits warning in September, there is no suggestion that Unilever is in as weak a position as Shell…” (ShellNews.net) 21 Nov 04

Heather Connon, investments editor

Sunday November 21, 2004

Unilever, the Dove to Domestos consumer products group, is considering abandoning its long-standing practice of having joint chairmen following questions from shareholders in the wake of the Royal Dutch/Shell scandal.

Unilever has traditionally been run by two chairs, drawn from the Dutch and British arms. The current incumbents are Patrick Cescau from the UK and Antony Burgmans from the Netherlands. Earlier this year, it responded to shareholder concern about dual management structures by switching to one unified board, instead of having Dutch and British ones, and appointing a majority of independent non-executives. But it is now considering introducing a conventional chairman/chief executive structure.

That follows the decision of Royal Dutch/Shell to move to single ownership - ditching its dual company status and adopting a single board - in the wake of the scandal of its overbooking reserves. While Unilever has had a run of poor results this year, culminating in a profits warning in September, there is no suggestion that Unilever is in as weak a position as Shell, but shareholders have been asking whether its corporate structure means there is a risk of similar problems occurring.

A decision on changing structure may be announced in February, when the group is expected to unveil its strategy to boost sales and margin growth.

A spokesman said the group would certainly change its structure if there was evidence that it would improve performance. 'But if you look at the achievements over the past five years, they were all achieved with two chairmen.'

If the company does move to one chairman, that position is likely to be taken by Burgmans and Cescau would become chief executive.

http://observer.guardian.co.uk/business/story/0,,1355905,00.html