Danone needs new independent chairman instead of Faber, says investor Artisan


In this news, we discuss the Danone needs new independent chairman instead of Faber, says investor Artisan.

PARIS (Tech News Update) – U.S investment company Artisan Partners on Wednesday said that Danone needed to appoint a new, independent chairman, adding more pressure on Emmanuel Faber who holds that position at the French food company.

This week, Danone said Faber – who until now has combined the CEO and chairman roles – would stay on as chairman and oversee the search for a new chief executive.

“With Mr. Faber as chairman, the incoming CEO will not have the appropriate latitude to set a new direction,” wrote Artisan, which has a stake of around 3% in Danone.

Artisan Partners’ letter to Danone’s board of management echoed a similar position from investment company Bluebell, which also said Danone should appoint another independent chairman instead of Faber.

Activist investors say Danone – whose brands include Evian and Actimel – needs a management revamp as they believe that under Faber’s tenure, Danone’s sales growth, margins and share price have lagged rivals, including Perrier-owner Nestle and Unilever, the maker of Cornetto ice cream and Lipton tea.

Reporting by Gwenaelle Barzic, Benoit Van Overstraeten, Sudip Kar-Gupta; editing by Jason Neely and Louise Heavens

(This story has not been edited by Bollyinside staff and is auto-generated from a syndicated feed.)

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