Unilever has abruptly ousted chief executive Hein Schumacher after less than two years at the helm, replacing him with chief financial officer Fernando Fernandez in a surprise move to accelerate the company's turnaround plans.

The FTSE 100 consumer goods giant announced that Schumacher will step down on 1 March and leave the company on 31 May "by mutual agreement". Fernandez, an Argentine who has been with Unilever for almost 40 years, will take over as chief executive.

The decision came after a board meeting on Monday where directors deemed Fernandez "better suited" to execute the turnaround plan at a faster pace. The board, which includes US activist investor Nelson Peltz, was reportedly unified in the decision.

"Fernando is a guy of pace and speed," said a person familiar with the board's thinking, adding that his experience running Unilever's beauty business, which is "the core of where Unilever is going", made him the right candidate.

In an email after the announcement, Schumacher said: "I regret leaving Unilever earlier than anticipated but I stand by my record and approach." He added that the board was "eager to step up the pace of our strategy execution" underlined by the leadership change.

Unilever chairman Ian Meakins thanked Schumacher for "resetting Unilever's strategy, for the focus and discipline he has brought to the company and for the solid financial progress delivered during 2024."

He added: "The board has been impressed with Fernando's decisive and results-oriented approach and his ability to drive change at speed."

The maker of Dove soap, Hellmann's mayonnaise and Ben & Jerry's ice cream has been under growing pressure from investors to improve performance. Schumacher had launched a restructuring that included cutting 7,500 jobs and planning to spin off the ice cream business.

The timing surprised analysts, as Unilever's share price had risen 11 per cent since Schumacher joined. At the company's recent results, however, Unilever forecast muted growth at the start of the year.

Fernandez, who previously led Unilever's beauty business before becoming chief financial officer in early 2024, said: "Our focus will be on building a future-fit portfolio with an attractive growth footprint and delivering unmatched functional and perceivable superiority across our top 30 power brands."

Unilever shares fell as much as 3 per cent following the news as investors digested the unexpected leadership change.

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