Shares of Mondelez International Inc (NASDAQ: MDLZ) gained more than 1 percent early Monday morning after the Wall Street Journal reported
Sunday that the snack-maker is looking to oust its CEO Irene Rosenfeld.
Mondelez's move to find a successor to Rosenfeld stems from increased pressure from major shareholders to reverse declining
sales and better position itself to thrive in a market where consumers are demanding healthier options.
Rosenfeld has communicated a plan to introduce
new, healthier snacks. However, throughout 2016, the company's revenue dipped more than 12 percent. Meanwhile, Mondelez's stock
is trading nearly flat since the start of 2017 and up just 4 percent over the past year.
The Wall Street Journal report further suggested that Mondelez's chief growth officer Tim Cofer and its chief financial officer
Brian Gladden are two potential successors.
Activist Investors Heavily Invested
There is also the possibility that Mondelez could end up being
acquired by a larger food company. This is an action activist shareholder and member of the board, Nelson Peltz, has been
pushing for years.
Bill Ackman, another activist investor, is also a major shareholder of Mondelez with a stake of more than 5 percent and even
added to his position in early
2017.
Related Links:
Myth: Sales
Of Snacks Rise In Uncertain Times
Should
Wal-Mart Investors Be Concerned That Amazon Invited Food Execs To Its Seattle Office?
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.