In a significant leadership shakeup, Kenvue Inc., the consumer health giant behind iconic brands like Tylenol, Neutrogena, and Listerine, has announced the immediate departure of its Chief Executive Officer, Thibaut Mongon. This unexpected exit, effective July 14, 2025, coincides with the company launching a comprehensive strategic review. The move comes amidst increasing pressure from investors regarding Kenvue’s recent performance and future direction since its spinoff from Johnson & Johnson in 2023.
The board has swiftly appointed current independent director Kirk L. Perry as the interim Chief Executive Officer. Perry steps into the role immediately, aiming to provide stable leadership as Kenvue navigates this pivotal period. This leadership transition marks the second major executive change for Kenvue this year, signaling a period of significant internal evaluation and potential restructuring for the company.
Understanding the Leadership Transition
Thibaut Mongon’s resignation as both CEO and a member of Kenvue’s Board of Directors became effective immediately on July 14, 2025. The reasons for his departure, while not explicitly detailed as termination for cause in public filings, align with a period of intensified strategic evaluation prompted by the board.
Mr. Mongon is set to receive standard severance payments and benefits as per the company’s existing Executive Severance Pay Plan. Furthermore, his long-term incentive equity awards will be treated under “retirement” provisions due to his tenure and age. This treatment is conditional upon him executing a release of claims and adhering to certain restrictive covenants outlined in his agreements. Following Mongon’s exit, the size of Kenvue’s board was reduced by one, now comprising twelve directors.
The Interim CEO Steps In
To ensure continuity, Kenvue’s board quickly appointed Kirk L. Perry as the interim CEO. Mr. Perry is not new to Kenvue, having served as an independent director. His background includes extensive experience in the consumer goods sector, notably a 23-year tenure at Procter & Gamble. More recently, he led the technology and data analytics firm Circana as CEO. His familiarity with the consumer landscape and Kenvue’s strategic challenges positions him to guide the company through this transitional phase.
Details of Mr. Perry’s interim compensation package have been disclosed. He will receive an annualized base salary of $1,250,000. He is also eligible for a performance-based cash incentive award of up to $1,500,000. This incentive is payable upon the appointment of a permanent CEO. Additionally, Perry will receive equity awards valued at $5 million, split equally between stock options and restricted stock units. These equity awards are structured to vest one year after the transition date, provided he remains in continuous service as CEO until the interim period ends and stays on the board until the vesting anniversary. Kenvue will also reimburse him up to $25,000 in legal fees related to his appointment. It is important to note that Mr. Perry will not participate in the standard Severance Plan for executives, nor will he receive additional compensation for his ongoing Board service while serving as interim CEO.
The Catalyst: Investor Pressure and Performance
The backdrop to these significant changes is a period of considerable investor scrutiny. Since becoming a standalone company, Kenvue has faced challenges, particularly in improving profitability within certain segments. The skin health and beauty division, home to major brands like Neutrogena and Aveeno, has been a key area of focus for performance improvement.
Analysts have noted that the CEO change, while sudden, was not entirely unexpected given the underlying performance challenges the company has faced. Industry observers, like Nik Modi from RBC Capital Markets, highlighted that Kenvue’s fundamental business performance had created an environment ripe for strategic adjustments.
Investor dissatisfaction intensified earlier in the year. Kenvue had forecast its annual profit to remain flat year-over-year in May 2025. This outlook included an anticipated $150 million impact from tariffs, further pressuring expectations. Firms like Toms Capital had publicly called for Kenvue to explore various strategic options. These suggestions included potentially selling the entire company or divesting significant parts of its brand portfolio. These calls from the investment community appear to have directly influenced the board’s decision to initiate a formal strategic review.
Launching a Comprehensive Strategic Review
Concurrent with the CEO change, Kenvue’s board officially launched a formal, comprehensive strategic review. This process is designed to evaluate a broad spectrum of potential alternatives for the company’s future. The primary goal stated is to accelerate profitable growth and “unlock the inherent value” within Kenvue’s extensive portfolio of consumer health brands.
A dedicated five-member Strategic Review Committee has been established by the board to oversee this critical process. This committee is chaired by director Melanie L. Healey. To ensure an independent and expert perspective, the committee has engaged external financial and consulting firms. Centerview Partners will provide financial advisory services, while McKinsey & Co. will offer consulting expertise. Their role is to help the committee evaluate options thoroughly and provide informed recommendations to the full board.
While the filing initiating the review did not provide a specific timeline for completion, it did mention exploring avenues like optimizing the brand portfolio. Analyst expectations suggest this could significantly increase the likelihood of Kenvue proceeding with the sale of some larger brands or streamlining its beauty portfolio. Reports from June 2025 had already indicated Kenvue was exploring the potential sale of assets, particularly within its skin health and beauty segment. The strategic review formalizes this exploration and expands its scope to the entire company’s structure and assets.
Financial Performance Snapshot
Alongside these significant announcements, Kenvue provided a preliminary update on its expected financial performance for the second quarter ending June 29, 2025. The company anticipates reporting adjusted earnings per share (EPS) in the range of 28–29 cents. This preliminary figure aligns with analyst estimates compiled by LSEG.
It’s important to remember these are unaudited figures. Full, detailed second-quarter financial results and updated fiscal year 2025 guidance are scheduled to be released on August 7, 2025. This release will include a corresponding earnings call, providing further clarity on Kenvue’s recent performance and management’s outlook following the strategic changes.
Investor and Analyst Reactions
Initial reactions from investors and analysts have been varied but largely cautious. The sudden departure of the CEO introduces an element of uncertainty. However, the board’s rapid actions – appointing an experienced interim leader from within the board and immediately launching the strategic review – are seen as proactive steps.
Analysts noted the interim appointment of a director familiar with the company’s strategy is likely to minimize operational disruption. The compensation terms for the interim CEO were viewed as relatively modest, aligning incentives with the transition and finding a permanent replacement. The strategic review, supported by external advisors, presents potential upside. This could come from portfolio reshaping or divestitures that might unlock value. However, the ultimate outcome remains uncertain, creating an “overhang” on the stock until more details emerge. From a governance perspective, the process was viewed as orderly. The CEO transition and interim appointment followed clear procedures. Severance and equity treatments for Mr. Mongon align with existing plans. The dedicated committee for the strategic review, independently advised, demonstrates strong board oversight. Further clarity, especially regarding financial performance and the strategic review’s potential direction, is keenly awaited with the August 7 earnings release.
Looking Ahead for Kenvue
Kenvue stands at a pivotal moment. The leadership change and the initiation of a comprehensive strategic review are direct responses to performance pressures and investor calls for action. While the immediate future involves navigating an interim period, the longer-term focus is clearly on evaluating how to best leverage Kenvue’s powerful brand portfolio to drive sustainable, profitable growth.
The outcomes of the strategic review could significantly reshape Kenvue. Potential divestitures might streamline operations and focus resources on core, high-growth areas. Alternatively, other structural changes could be explored. Investors and stakeholders will be closely watching the August 7 financial results and awaiting further updates from the strategic review committee. The leadership transition, coupled with this in-depth evaluation, signals a determined effort by Kenvue’s board to address challenges head-on and chart a potentially new course for the consumer health leader.
Frequently Asked Questions
Why did Kenvue’s CEO, Thibaut Mongon, leave the company?
Kenvue announced that CEO Thibaut Mongon resigned effective July 14, 2025, as the company continues a strategic review. His departure comes amidst ongoing investor pressure concerning Kenvue’s financial performance and profitability since its 2023 spinoff from Johnson & Johnson. While details are limited, the change aligns with the board’s intensified efforts to evaluate the company’s strategic direction to unlock value.
Where can I find Kenvue’s full Q2 financial results and future guidance?
Kenvue has scheduled the release of its full, audited second-quarter financial results for August 7, 2025. On this same date, the company plans to provide updated guidance for the full fiscal year 2025. Kenvue will also host a corresponding earnings call to discuss these results and provide management commentary. Preliminary Q2 adjusted EPS estimates were released on July 14, 2025.
What is the Kenvue strategic review evaluating?
The comprehensive strategic review launched by Kenvue’s board aims to evaluate a broad range of potential alternatives for the company. This includes assessing options for optimizing its brand portfolio, potentially leading to divestitures of certain assets or segments. The goal is to accelerate profitable growth and “unlock the inherent value” of Kenvue’s business. A dedicated five-member committee, advised by Centerview Partners and McKinsey & Co., is overseeing this evaluation process.
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