Can new bosses fire up these shares?

Demands for a faster pace of change at Unilever (LSE:ULVR) were laid bare today when directors handed control to a leader known for his “decisive and results-oriented approach”.

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Unveiling new chief executive Fernando Fernandez, board chair Ian Meakins pointed out that the consumer goods group has “much further to go to deliver best-in-class results”.

Meakins praised the efforts of current CEO Hein Schumacher, whose 18-month tenure is coming to an end despite laying the foundation of Unilever’s Growth Action Plan and beginning the separation of the Magnum ice cream division.

When Schumacher presented annual results earlier this month there were few if any indications that he would be out of the job by March.

He said all business groups delivered volume growth in 2024 as Schumacher highlighted progress making Unilever a “consistently higher-performing business”.

However, the board signalled its intention to accelerate the process today when it promoted Fernandez from the chief financial officer’s role he’s held since January 2024.

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He previously ran Beauty & Wellbeing, which was one of Unilever’s fastest-growing businesses, after earlier leadership roles in Latin America, Brazil and the Philippines.

Meakins said: “The board has been impressed with Fernando’s decisive and results-oriented approach and his ability to drive change at speed.

“He has a strong track record of performance and portfolio management, a love of brands and a profound knowledge of Unilever’s operations.”

The change in leadership caused shares to fall 68p to 4415p, even though Unilever stressed no change to its 2025 outlook or medium-term guidance. The stock has drifted since topping 5,000p in September, having jumped by a third in the period since April’s first-quarter results.

UBS, which has a Sell recommendation and 4,110p price target, said: “Our understanding is that the decision is driven by the board’s willingness to accelerate the pace of change at Unilever (while remaining fully committed to the current strategy).

“While Mr Schumacher was instrumental in building the foundation of the Growth Action Plan, Unilever is entering the new phase of its strategic journey where execution is key. As such, we believe the board sees Mr Fernandez as best equipped for the role.”

The leadership of B&M European Value Retail SA (LSE:BME) is also in focus after the discount retailer yesterday announced the retirement of Alex Russo alongside weaker profit guidance.

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The value of the former FTSE 100 company, which is in the advanced stages of appointing a new boss, has fallen sharply after a tough 2024 shaped by the tight consumer spending backdrop.

Figures for the Golden Quarter showed that UK like-for-like sales dropped 2.8%, with trading so far this year prompting a 3% downgrade in 2025 earnings expectations.

Broker Peel Hunt said Russo, who took the helm in 2022, has done a “great job” improving store standards and in executing the company’s strategy.

It added: “A testament to that is that we would not expect the new CEO to come in and make major changes to the company’s long-term plan. Yes, there will be new tactical ideas, but the new store opening programme is likely intact, as is the very cash-distributive model.”

The shares today showed signs of steadying at 285p, while the company trades with a forward dividend yield of 10.8%.

Peel Hunt added: “We lower our target price from 600p to 500p due to increased uncertainty, but the upside remains immense.”