Diageo faces investor frustration over CEO appointment delay: report
News Summary
Global drinks giant Diageo is facing increasing investor frustration over its failure to name a new chief executive, following a profit warning that sent its shares to a ten-year low. Interim CEO Nik Jhangiani had been widely expected to be appointed as the successor to former CEO Debra Crew, who resigned in July, but the board is also considering external candidates, including outgoing GSK CEO Dame Emma Walmsley. Despite Jhangiani's strong reputation among shareholders and an £8.5 million stock award, the delay in appointment has seen the company's shares decline 32% in 2025. Investors are calling for a swift resolution to the leadership uncertainty, which is not only holding up strategic decisions but also raising concerns among fund managers about potential takeovers of Diageo's brands. Reports suggest some senior management have raised concerns with the chairman regarding the circumstances of Crew's departure, potentially further slowing the appointment process.
Background
Diageo, a FTSE 100 company, is a leading global producer of alcoholic beverages, known for brands like Guinness. Former CEO Debra Crew resigned in July 2025 after losing the board's confidence, prompting the search for a new leader. Nik Jhangiani, the interim CEO, previously served as the company's chief financial officer. Recently, Diageo issued a profit warning, citing weak consumer demand in its key markets of China and the US. This challenging business environment, coupled with the leadership uncertainty, has exacerbated market unease and contributed to a significant decline in the company's share price throughout 2025.
In-Depth AI Insights
What are the underlying reasons for Diageo's delayed CEO appointment, and what internal dynamics does this reveal? - While ostensibly about finding the best candidate, the deeper reason likely lies in the true nature of the