Shares in Reckitt Benckiser (LON:RB) have fallen into the red in today’s session as the group said that its chief executive Rakesh Kapoor was planning to step down from the company. The maker of Durex condoms and Dettol soap said that it had started the search for a new CEO.
As of 08:51 GMT, Reckitt Benckiser’s share price had given up 2.03 percent to 6,125.00p, underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.09 percent lower at 6,888.75 points. The group’s shares have given up just under 10 percent of their value over the past year, as compared with about an 11.2-percent dip in the Footsie.
Rakesh Kapoor to step down
Reckitt Benckiser announced in a statement today that its chief executive Rakesh Kapoor had decided to retire by the end of the year after more than eight years as CEO and more than three decades at the company. The group said that it had initiated a formal process to appoint his successor, considering both internal and external candidates.
“Under Rakesh’s leadership, RB has been transformed from a household cleaning business to a world leader in consumer health and hygiene,” Reckitt Benckiser’s chairman Chris Sinclair commented in the statement. Kapoor meanwhile noted that the last two years in particular had been ‘transformational,’ while “2020 will herald a new decade and I believe now is a good time for new leadership”.
Analysts on FTSE 100 group
The 17 analysts offering 12-month price targets for Reckitt Benckiser for the Financial Times have a median target of 7,090.00p on the shares, with a high estimate of 9,000.00p and a low estimate of 5,100.00p. As of January 12, the consensus forecast amongst 21 polled investment analysts covering the consumer goods group advises investors to hold their position in the company.