US investment firm Artisan Partners has joined activist fund Bluebell Capital Partners in demanding that Danone finds a new CEO.
Earlier this year, a report by French business magazine Challenges revealed that Bluebell had bought a stake in the French company and was pushing for governance changes.
The London-based fund called for the chairman and CEO roles to be split and for Emmanuel Faber, who currently holds both positions, to step down.
These demands were largely echoed in a new letter from Artisan to Danone’s board of directors, which said that there is “an urgent need” to address the board’s structure and the company’s leadership.
“The roles of CEO and chairman should be split to reflect modern-day corporate governance,” wrote Artisan, which Reuters says has built a 3% stake in Danone.
“Governance standards also require that prior leadership leave the board. And logic demands more consumer goods experience on the board of directors.
“Finally, a new, non-financial CEO with consumer goods experience and a track record of success should be installed as soon as possible to restore Danone to the elevated status it deserves within the French business establishment.”
Danone recently reported its year-end results which Artisan claims “exhibited a continuation of poor performance”, adding that the company’s sales and volume growth, as well as profitability, “continue to trail relevant category competitors”.
In order to deliver more profitable results, Danone announced a major reorganisation of the business and up to 2,000 staff cuts back in November.
Artisan also recently urged Danone to sell underperforming brands such as Asian water label Mizone, according to Reuters.
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