Paris (AFP)

The board of directors of Danone "terminated the functions" of its boss Emmanuel Faber "with immediate effect", after several months of sling shareholders who challenged his strategy, according to a statement released Monday by the agri-food group.

The former boss of the electrical equipment manufacturer Legrand, Gilles Schnepp, will take the head of the board of directors.

While waiting to find a new general manager "of international stature", an interim duo has been appointed "to ensure the continuity of the operational".

It is made up of a general manager, Véronique Penchienati-Bosetta, and a deputy general manager, Shane Grant.

Mr. Faber, 57, had been CEO since 2014 and CEO since 2017. He had been on the grill for several months, shareholders having notably demanded the separation of the functions of Chairman and CEO in order to restore new vigor to the group, battered by the Covid-19 pandemic.

Danone had dropped ballast on March 1, the board of directors voting the principle of the separation of the two positions, the outgoing CEO retaining only the chairmanship of the board.

Emmanuel Faber, however, continued to act as interim manager.

But two days later, the investment fund Artisan Parters, which was campaigning for the departure of Mr. Faber, had said "strongly urge the board to review its position".

This fund, Danone's third shareholder with around 3% of the capital, called for the appointment "immediately" of a "truly independent" chairman.

Artisan Partners and another shareholder fund, Bluebell Capital Partners, wanted an outright departure from Emmanuel Faber, believing that, under his leadership, Danone had declined compared to its main competitors.

By appointing Gilles Schnepp, the board of directors has therefore responded to the requirements of these funds.

These shareholders also demanded that the reorganization and cost reduction plan launched by Emmanuel Faber be at least suspended.

Called "Local First", this plan, currently being negotiated with the unions, aims according to the outgoing management to make Danone more "agile" and generate savings by removing hierarchical layers.

Up to 2,000 job cuts are planned.

© 2021 AFP