Emmanuel Faber, CEO of Danone, is in difficulty while his group earns less money than the competitors.
His strategy is contested by investment funds which demand his departure.
During the presentation of the results for 2020, Friday, the atypical boss promised the recovery for this year.
He is surely one of the most atypical leaders of the CAC 40. We particularly remember Emmanuel Faber in June 2016, in front of HEC students, delivering a personal and moving speech that will go viral.
The one who then speaks of "making the world a better place" and believes that "without social justice, there will be no more economy", has become CEO of Danone since December 1, 2017. But today, the agri-food group is winning less money than its competitors.
And investment funds have come into the capital to demand changes.
Emmanuel Faber therefore finds himself in the hot seat.
"Faber tries to manage a multinational differently"
With him, a whole strategy is called into question.
On June 26, 2020, Danone became the first group of this size to adopt the legal status of a company with a mission.
In other words, the company makes a statutory commitment to pursue an environmental and social goal, to serve the collective interest, beyond its financial objectives.
A strong symbol, which Emmanuel Faber then justifies in lengthy interviews in the media.
"He tries to manage a multinational differently", says those around him.
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But today Danone seems to be slowing down.
The operating margin fell to 14% last year.
Turnover fell by almost 7%.
Due to the Covid and the closure of restaurants in particular, the Waters division is in difficulty.
The global strategy is called into question.
Investment funds have therefore arrived in the capital to ask Emmanuel Faber to leave.
Ceding power
"He pays dearly for his side that some have interpreted as giver of lessons", notes a relative.
While a few weeks ago, everyone denied a possible departure, his close guard is now much less categorical.
In the entourage of the CEO, many bet on the fact that he will have to give up power.
Emmanuel Faber could be appointed president and thus embody Danone's vision.
This would imply the arrival of a general manager within a few weeks to manage day-to-day operations and make the requested rationalizations.
One of the relatives of the current CEO thus confirms to Europe 1 that sales in the water sector could be considered.
Even Danone's history, such as the son of the founder, Franck Riboud, who led the group for a long time, would be in favor.