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Reckitt Benckiser CEO announces plan to retire at the end of 2019

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Reckitt Benckiser chief executive Rakesh Kapoor is set to retire at the end of 2019, the firm announced today, leading it to launch a formal search for its next boss.

The maker of Nurofen and Clearasil said it is looking at both internal and external candidates to succeed Kapoor, as shares dropped by three per cent on the news.

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“It has been a huge privilege to lead RB and I am very proud of the hard work and commitment of our people in delivering our success and many achievements,” Kapoor said. “2020 will herald a new decade and I believe now is a good time for new leadership to take this great company through the next phase of outperformance.”

By the time he retires, Kapoor will have spent eight years at the helm of Reckitt Benckiser and 32 years in total at the company.

Board chairman Chris Sinclair said: "Under Rakesh's leadership, RB has been transformed from a household cleaning business to a world leader in consumer health and hygiene.”

Calling the outgoing boss a “visionary” and “architect” behind this transformation, Sinclair added: “On behalf of the board, I want to express our appreciation for his vision, passion and leadership over his long and distinguished tenure.

However, analysts were less complimentary about the outgoing boss, who split the group’s business into separate divisions – one for healthcare and the other for its home and cleaning products.

“News that Rakesh Kapoor is to stand down as chief executive of Reckitt Benckiser shouldn’t come as a surprise given how the business has floundered over the past year or two,” said Russ Mould, investment director at AJ Bell.

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“If he is leaving of his own free will then he’s not exactly departing when everything is going well,” he added.

The consumer goods conglomerate has faced a number of challenges in the last two years, including from a major cyber attack that wreaked havoc with its systems and factory disruption at baby formula-maker Mead Johnson, Kapoor’s high profile $17.9bn (£13.91bn) acquisition.