Bunge Ltd., White Plains, N.Y., announced on Dec. 10 that CEO Soren Schroder, 57, will step down. To ensure a smooth leadership transition, Schroder, who has served as CEO since 2013, will continue in his current role until a successor is named. The board has established a search committee to identify the company’s next CEO.
“It has been an honor to serve as Bunge’s CEO,” said Schroder. “We are making solid progress, and it is the right time to turn over the leadership reins. The company has a strong legacy and an exciting future ahead.”
Schroder joined Bunge in 2000 and has held a variety of agribusiness leadership roles, including CEO of Bunge North America.
Bunge noted that Schroder’s tenure included a significant strengthening of Bunge’s core activities in agribusiness and growth in food and ingredients, notably with the recent acquisition of Loders Croklaan. It said he has focused on creating a simpler, more efficient organization, establishing a series of global partnerships, building a first-class team and increasing Bunge’s focus on customers. However, Bloomberg noted that 2017 was Bunge’s worst year since 2009, and that after promising investors a strong 2018 second-half, Schroder trimmed the outlook for the year.
Schroder was seen as having resisted attempts by Glencore Plc and Archer Daniels Midland Co. to forge a deal with Bunge, sources told Bloomberg. And the news comes just a little over a month after activist shareholders joined the Bunge board (GM Nov. 9, p. 24) to initiate a strategic review. Incoming Continental Grain Co. Chairman and CEO Paul Fribourg was put in charge of the review.
Bunge volumes went up Dec. 10, the day of the announcement to 3.67 million shares, from 2.16 on Dec. 7. Shares went up just a bit to close at $59.64 from $59.47.
In addition to the Schroder news, Kathleen Hyle, 60, who has served on Bunge’s board of directors since 2012, will become board chair, effective immediately. L. Patrick Lupo, who has served on Bunge’s board since 2006 and in the role of chairman since 2014, will remain a board member. Hyle will serve on the CEO search committee, along with board members Fribourg, J. Erik Fyrwald, and Mark Zenuk.
“I am very pleased to become chair of Bunge’s board of directors,” said Hyle. “The company is well positioned for long-term growth with the strong foundation that has been established under Soren’s leadership. We have a world-class global position in agribusiness and food and ingredients, and, with our excellent management team, we will continue to strengthen and evolve our business. I want to thank Pat for his tremendous contributions to Bunge over the course of many years and his leadership as board chairman.”
Hyle has served as the head of the audit committee for the board for the past five years. She has also served as senior vice president of Constellation Energy and COO of Constellation Energy Resources from 2008 until her retirement in 2012, when Constellation completed its merger with Exelon Corp. She joined the company in 2003, and served in a variety of senior-level finance and operations positions, including as CFO of Constellation New Energy Inc. Previously, she served as CFO of ANC Rental Corp., the parent company of Alamo Rent-A-Car and National Rent-A-Car; vice president and Treasurer of Auto Nation, Inc.; and vice president and treasurer of The Black & Decker Corp. She is currently a director of AmerisourceBergen Corp. and is a former director of The ADT Corp.