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Paul Walsh to Step Down as Diageo CEO

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LONDON -- In a long-expected move, this morning Diageo  (LSE: DGE  )   (NYSE: DEO  ) announced that chief operating officer Ivan Menezes will take over the duties of chief executive officer Paul Walsh on July 1, 2013, with a 12-month handing-over period until the latter retires from the company on June 30, 2014.

Chairman D.r Franz B. Humer commented:

Paul is an outstanding Chief Executive. He has served our business, its shareholders, employees and partners with enormous imagination and dedication over the past 13 years... The Board is immensely grateful for his ambitious and thoughtful stewardship of the business and its people. The transition process which has been put in place enables Paul to contribute his knowledge and experience during Ivan's first year as Chief Executive Officer.

Walsh's tenure has spanned 13 years -- a lot longer than many of those last at the helm of FTSE 100 companies -- and has been widely credited for much of Diageo's success, as investors who held shares since he became CEO have seen their value increase fivefold to 1,970 pence today.

The shares didn't see a big fall or gain this morning, representing the market's faith in Walsh's successor. Menezes has run several of Diageo's regional divisions, and the board has a habit of observing its future leaders in such roles. Indeed, Walsh was COO before stepping up to the CEO position.

On Menezes' appointment, Dr. Humer stated:

We are delighted to have a leader of Ivan's talents and global experience to succeed Paul. The handover is being made at a time when the business is strong and Ivan takes on the role of CEO at an exciting stage of the company's global development. The Board is confident that Ivan will inspire our organization and Diageo will continue to achieve our medium-term performance objectives.

But if you're looking for other reliable companies in the FTSE 100 outside of Diageo, I recommend the special FREE report from The Motley Fool, newly updated for 2013, "8 Shares Held by Britain's Super-Investor." 

The report contains the names of the defensive shares favored by Neil Woodford, whose track record speaks for itself, having beaten the Footsie by 200%-plus during the 15 years to Oct. 2012 with a collection of dependable, blue-chip names. Simply click here to have your copy delivered immediately to your inbox, absolutely free of charge.


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Related Tickers

10/21/2016 4:01 PM
DEO $108.24 Down -0.01 -0.01%
Diageo CAPS Rating: *****
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