The Scotsman: Unilever Denies Plans to Scrap Dual Chairmanship: “Speculation that Unilever was considering the move has risen since another Anglo-Dutch firm – oil giant Shell – decided to unite under a single board and leadership. Shell responded to heavy pressure from investors who blamed a structure which saw boards meeting separately in London and The Hague for contributing to events that led to a 20% downgrade in its oil and gas reserves.” (ShellNews.net) Posted 22 Nov 04)
By David Winning, PA City Staff
Consumer goods giant Unilever today denied that investors were pushing for the abolition of its dual-chairman structure.
Unilever, which shocked the City with a profits warning in September, said there were no plans to scrap its policy of appointing two chairs drawn from its Dutch and British arms.
Speculation that Unilever was considering the move has risen since another Anglo-Dutch firm – oil giant Shell – decided to unite under a single board and leadership.
Shell responded to heavy pressure from investors who blamed a structure which saw boards meeting separately in London and The Hague for contributing to events that led to a 20% downgrade in its oil and gas reserves.
Media reports today said the Unilever board was debating proposals that would see Antony Burgmans become sole chairman and his current colleague, Patrick Cescau, take up the role of chief executive.
Such a move would have made an operational restructuring necessary, with the group having to decide whether it was run from London or Rotterdam.
But a spokesman for Unilever said the company was sticking by the outcome of its corporate governance review in May.
Shareholders backed the creation of one unified board, rather than separate Dutch and British ones, and the appointment of a majority of independent non-executive directors.
The spokesman said corporate governance had not been an issue for investors since then.
“All that has happened is that another company in another sector facing different issues has moved to change its structure and people are speculating that we may follow suit,” he said.
Unilever, whose products include Magnum ice cream, Lipton Ice Tea, Hellmann’s mayonnaise and Dove soap, has issued a string of disappointing updates this year.
It revealed last month that sales of its top 400 brands shrank by 1% in the third quarter and it was reviewing its targets up to 2010.
Pre-tax profits fell 2% to 1.32 billion euros (£916 million) in the three months to September 30 as consumers in Europe and North America kept a tight rein on spending and discount retailers put pressure on prices.
http://business.scotsman.com/latest.cfm?id=3786040