Unilever begins process to hire new CEO ahead of strategy update next week

Unilever is beginning the hunt for a successor to long-serving chief executive Paul Polman, according to reports.

The consumer goods colossus, which owns brands including Marmite, Lynx deodorant and Persil washing power, has hired headhunters Egon Zehnder to prepare for a succession process that could be 18 months away.

A replacement for 61-year old Polman, who has been chief executive of the Anglo-Dutch outfit since 2009, is being eyed as the group continues a shake-up that was accelerated by the rejection of a £115bn takeover bid by Kraft Heinz.

Polman said he would "go faster and further" with the 'Connected4Growth' restructuring programme, launching a €5bn share buyback, confirming the sell-off of its spreads business, combining the foods and refreshment units, targeting a net £6bn of cost savings and a conducting a review of its dual-headed UK-and-Netherlands legal structure.

Next Wednesday and Thursday, Unilever will host capital market days where management are expected to provide the outcome of the legal review and an update on the spreads disposal.

These both could present "upside risk" to the share price, said analysts at UBS in a preview on Friday, which could also be heightened by discussions about the progress of various initiatives like Connected4Growth, 'zero-based budgeting' (ZBB) and recent M&A activity. "In recent years CMDs have been a positive catalyst for the stock."