With activist investor Starboard Value holding a seat on Kenvue’s board of directors, the consumer healthcare company is taking big steps in its strategic review that has now resulted in a leadership shakeup.
Thibaut Mongon, who has helmed Kenvue since its spinout from Johnson & Johnson in 2023, is out effective immediately, the company announced in a Monday press release.
With Mongon out, Kenvue tapped board member Kirk Perry to take the CEO spot on an interim basis as the company and its executive search firm look for a permanent replacement.
The CEO transition signals the first step in a “set of actions” meant to help Kenvue “reach its full potential,” according to the company's release.
“We are considering a broad range of potential alternatives, including ways to simplify the company’s portfolio and how it operates,” board chairman Larry Merlo said in the release. “At the same time, with the CEO transition and recent appointment of a new CFO, we are aligning leadership expertise to drive the company forward.”
Mongon, a 20-year Johnson & Johnson veteran, was the natural choice to lead Kenvue through its spinout after spending four years chairing the consumer health organization when it was still under J&J’s wing. He was initially joined by chief financial officer Paul Ruh before the company brought Kellanova (formerly Kellogg Company) finance executive Amit Banati in as a CFO replacement in May.
Kenvue, which makes powerhouse consumer health brands such as Listerine mouthwash and pain reliever Tylenol, saw its second-quarter sales slip 4%, the company also reported on Monday.
The J&J spinout will disclose its full quarterly outcomes and a revised 2025 sales outlook in August. Previously, the company expected its full-year results to bring a net sales change of -1% to +1% compared to last year.
Kenvue’s sliding sales and new mission to “ensure we have the right talent, brand portfolio and operational foundation,” as Merlo put it, echoes activist investor Starboard’s previous sentiments about the company.
In a February proxy statement, Starboard outlined a goal to unlock the company's “trapped potential." The investor pointed to “disappointing” financial results and “ineffective board oversight” hindering the company’s performance.
Kenvue later inked a “cooperation agreement” with Starboard that saw its CEO, Jeffrey Smith, immediately join the board.