Emmanuel Faber, ecological humanist boss at Danone, landed by foreign pension funds

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Emmanuel Faber, ecological humanist boss at Danone, landed by foreign pension funds




by GuyGadeboisTheBack » 15/03/21, 12:55

The eco decryption. Why Emmanuel Faber, the boss of Danone, has landed

Emmanuel Faber is leaving Danone. The shareholders managed to oust him from the group. A board of directors on Sunday March 14 approved his immediate departure.

Emmanuel Faber was under pressure from certain shareholders, that of foreign investment funds: in particular a Briton, Bluebell, and an American, Artisan Patners, who owns 3% of Danone's capital. Both claimed the head of this atypical boss, a graduate of HEC, who joined Danone in 1997. Emmanuel Faber has spent most of his career in the agri-food group, succeeding Franck Riboud, and had modernized the company. But it was surprising in the classic world of bosses. For example, he was one of the first to lower his remuneration, to donate part of his income to associations. In the 90s, he published a book against the abuses of finance, he did not hide his environmental convictions either.

Emmanuel Faber was supported by the unions, despite the announcement of a restructuring plan which provided for 2 job cuts out of 000 in the world. In recent weeks, he had given pledges to his shareholders, in particular by agreeing to drop the post of CEO, but that was not enough.

Not enough profit

He is criticized for not having made enough profits for the shareholders, for having cut back on their dividends. Certainly, Danone has planned to pay this year, but not enough for these investment funds. Last year, the Danone share lost 27% on the stock market, but the group remains profitable, and has a turnover of 24 billion euros. Profitability, however, less good than its competitors, Nestlé or Unilever.

Emmanuel Faber defines himself as a social boss, responsible, to the point of inscribing his convictions in black and white in the company's statutes, since he had made Danone the first company with a CAC 40 mission, that is to say - to say that the group undertakes not to consider the only financial profits to define its strategy.
Emmanuel Faber is replaced by Gilles Schepp

The former boss of Legrand, 62, takes over the chairmanship of the board. He joined Danone last December and is clearly in the hands of the American investment fund, Artisan.
But beyond the men, the departure of Emmanuel Faber is a small earthquake in the business world. This is a sign that foreign activist funds have taken control of this French flagship. That traditional capitalism finally opposes a real resistance to reform, to develop its software, even in a world crossed by the Covid-19.

https://www.francetvinfo.fr/replay-radi ... 15341.html

Ah, the neo-liberal system is beautiful ... let's trust it to change the world .............................. to his profit. : Evil:
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Re: The parton with environmental aims from Danone landed by foreign pension funds




by ABC2019 » 15/03/21, 13:09

i was wondering what partons (which are elementary components of composite particles like protons: https://fr.wikipedia.org/wiki/Parton ) came to do in this forum : Mrgreen:
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Re: Emmanuel Faber, environmentalist partron from Danone landed by foreign pension funds




by Christophe » 15/03/21, 13:18

Roooh ABC do you ever make any typos?

Here it is corrected!
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Re: Emmanuel Faber, environmentalist partron from Danone landed by foreign pension funds




by ABC2019 » 15/03/21, 13:33

given the title of your answer, it was not easy : Mrgreen:
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Re: Emmanuel Faber, ecological humanist boss at Danone, landed by foreign pension funds




by Christophe » 15/03/21, 13:38

If it's good !!

Rohh the cheese!

By quoting we use the wrong title in the answer ... that's all ..
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Re: Emmanuel Faber, ecological humanist boss at Danone, landed by foreign pension funds




by Christophe » 15/03/21, 14:40

The Novethic article: https://www.novethic.fr/actualite/entre ... 49624.html

Emmanuel Faber at Danone, Paul Polman at Unilever, two leaders immolated on the altar of profitability

The brutal dismissal of Danone's CEO on the night of March 14 to 15, 2021 is the epilogue of a standoff that has become symbolic. It will fuel the debate at the spring general assemblies where companies will defend the 2020 results at half mast around a question: can shareholders demand dividends and still rising stock prices to the detriment of long-lasting strategies? term?

In the food industry, defending sustainable strategies challenged by your shareholders can be expensive. Paul Polman, Managing Director of Unilever had experienced this two years before Emmanuel Faber. The two men look little alike but the French and the Dutch have been two powerful voices in their sector's transition to more sustainable models. In recent years, they have been the stars of the platforms dedicated to the commitment of companies to sustainable development.

They explained the changes necessary in the food industry where dominant models contribute to accentuate climate change and the degradation of biodiversity. In different styles, they held similar speeches which consisted of combining respect for the environment and improvement of social conditions throughout the subcontracting chain by questioning the excess remuneration of managers. Emmanuel Faber had decided to give up his hat retirement in 2019, or 28 million euros, "for personal reasons".

Sacrifice the profits

Paul Polman had refused an increase in his package in 2015 on the grounds that the amount of his remuneration (10 million euros) "bothered him" compared to many others who worked just as much. These two elements have undoubtedly contributed to "dig their graves" of leaders of multinational agribusinesses. Emmanuel Faber and Paul Polman have thus called into question the rules which govern the world of large listed companies, whose directors must always be better paid in order to bring ever more money to their shareholders.

Their refusal is interpreted by the latter as a risk of sacrificing short-term profits and therefore dividends for the benefit of sustainable strategies, which are nevertheless essential to the sustainability of the very activity of these industries. The two men were well aware that they were doing a balancing act. Paul Polman has failed to launch a movement to suppress the sacrosanct quarterly reports that feed the infernal machine of very short-term stock market fluctuations.

Shareholder support

In a video interview with the Expansion on March 20, 2015, he said: "CEOs must explain to their shareholders why a business vision focused on sustainable development is good and, if we explain it well, we find enough 'shareholders to support it. They want to protect what is most valuable to companies like ours, its reputation. " Three years later, Paul Polman was pushed out by shareholders hostile to his strategy and worried to see this CEO more concerned with sustainable development than with financial returns. He gave up the reins of the group in early 2019 and has since devoted himself to the environmental and social causes that are dear to him.

Emmanuel Faber was released from his role as manager of Danone for less than 24 hours. He must certainly meditate on the speed of his descent into hell. Less than a year ago, it triumphed after having had 99% of shareholders adopt the status of company with a mission, a first for the CAC 42.
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Re: Emmanuel Faber, ecological humanist boss at Danone, landed by foreign pension funds




by Macro » 15/03/21, 15:10

Well here it is ... This gentleman will certainly be able to fully express his skills in a society that is more attentive to sustainable development ...
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Re: Emmanuel Faber, ecological humanist boss at Danone, landed by foreign pension funds




by thibr » 15/03/21, 20:20


he looks quite estimable especially for a boss : Wink:
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Re: Emmanuel Faber, ecological humanist boss at Danone, landed by foreign pension funds




by Obamot » 15/03/21, 20:51

Thanks for the video and for this thread. Social realism - which some in business circles call 'ideology', because they probably confuse it with idealism? - rarely matches economic realism. Although atypical and rather sympathetic, I still note that Danone is a company of mass poisoning with more addictive products.
He is a 'good man' in all his subjectivity.

Beautiful and deserved standing ovation at the end of the speech ...!
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Re: Emmanuel Faber, ecological humanist boss at Danone, landed by foreign pension funds




by ABC2019 » 15/03/21, 22:38

It is always complicated to adjust, strategies that do not have a clear optimum (or more precisely no clear function to optimize)

Like "we're gonna make money but in a social way"

or even

"we are going to wage war but without killing too many people"

or even

"we will ensure a good standard of living but without consuming too many resources"

or even

"we will fight against covid but by trying not to disturb people too much".
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