Major shareholders in Diageo have voiced growing frustration over the company’s failure to name a new chief executive this week, following a profit warning that sent its shares to a ten-year low, according to a Financial Times report.
The lack of clarity on leadership has added to market unease, with investors calling for a swift resolution as the FTSE 100 drinks giant navigates a challenging business environment.
Shareholders seek clarity as shares hit decade low
The Guinness owner’s board has been considering both internal and external candidates to succeed former CEO Debra Crew, who resigned in July after losing the board’s confidence.
Interim chief executive Nik Jhangiani, previously the company’s chief financial officer, had been widely expected to be appointed to the role permanently by the end of October.
However, Diageo’s latest trading statement, which included a profit warning, and its annual general meeting on Thursday passed without any mention of the new chief executive.
The omission drove the company’s shares lower once again, bringing their total decline in 2025 to 32 per cent, closing at £17.26.
Some of Diageo’s largest investors expressed concern over the prolonged delay.
“Investors are becoming increasingly puzzled as to why it’s taking so long,” said Kai Lehmann, senior analyst at Flossbach von Storch, one of Diageo’s top ten shareholders. “The market needs clarity . . . We would like to see a solution in place soon.”
A UK-based institutional investor echoed the sentiment, describing the lack of an announcement this week as “surprising.”
Diageo, in a statement to the Financial Times, said it was “making good progress with our search for a new CEO and will update the market in due course.”
Internal tensions and external options
While Jhangiani remains a leading contender for the top job, sources suggest his appointment is not guaranteed.
Several people familiar with the process indicated that the board has also considered external candidates, including Dame Emma Walmsley, the outgoing CEO of GSK, who briefly served on Diageo’s board in 2016.
Diageo has denied reports of internal dissent affecting the process, stating that “the chairman, or the board, has not received representations from senior management.”
However, the report said citing individuals familiar with the company said that some members of Diageo’s senior leadership had raised concerns with chair Sir John Manzoni over the circumstances of Crew’s departure.
These discussions, they suggested, could slow the appointment timeline.
A person close to GSK said Walmsley has not engaged in any discussions with Diageo and has no interest in the position.
Current GSK chief financial officer Julie Brown is a member of Diageo’s board.
Leadership uncertainty amid market pressures
The delay in naming Crew’s successor has also put strategic decisions on hold, with management waiting to see whether an external hire might introduce a new direction.
The uncertainty comes at a turbulent time for the company, which issued a profit warning citing weak consumer demand in both China and the US.
Fund manager Ben Needham of Ninety One warned that Diageo’s brands could be “incredibly vulnerable” to potential takeovers given the leadership vacuum and share price slump.
Despite the uncertainty, several investors still back Jhangiani for the role, noting his strong reputation among shareholders and his £8.5 million stock award, which provides significant incentive.
At Diageo’s AGM, 89 per cent of shareholders voted to approve the remuneration report, despite proxy adviser Glass Lewis urging opposition over a lack of performance-based metrics.
As Diageo works to restore investor confidence, the absence of a clear leadership plan continues to cast a shadow over one of Britain’s most prominent consumer companies.
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