Why Campbell Soup’s New CEO Makes Everyone Happy

Campbell Soup, one of America’s most famous canned soup brands, has finally found itself a new CEO that both shareholders and Third Point, an activist hedge fund led by famous investor Daniel Loeb, approve of. This happened around 6 months after the former CEO Denise Morrison resigned abruptly and according to CNBC, Morrison notified employees of her resignation within just 48 hours.

While it is up to speculation on whether Third Point has some involvement in the resignation of the former CEO, it is hard to mention anything about Campbell soup without mentioning Third point. The activist hedge fund famously put up a critical video on Campbell Soup in October 2018, slamming the management team for misusing investor’s money, while urging investors to vote Third Point’s candidates into the board of directors.

Nonetheless, Mark Clouse seems to be a good candidate to fill Morrsion’s shoes, given that he already has a good understanding in the subject matter. Clouse served as the CEO of Pinnacle Food from May 2016 to October 2018, and under his leadership, net income grew from $212 million in fiscal year 2015 to $532 million in fiscal year 2017 and stock prices grew from roughly $42/share when he took over as CEO, to almost $58/share when he left. Now, all that’s left is to wait for the new CEO to show us what he is capable of.

Written by  
5 years ago