Kenvue didn’t just name a new CEO — it admitted the original strategy isn’t working
Kenvue didn’t just name a new CEO — it admitted the original strategy isn’t working.
This J&J spinout was pitched as a simpler, pure-play OTC business:
• Streamlined portfolio
• Leaner operating model
• Stronger margins
That thesis hasn’t held:
— Sales have stagnated
— Earnings are down
— Operating leverage hasn’t materialized
Now the board is launching a strategic review and appointing an interim CEO.
That’s not routine — it’s defensive.
You don’t trigger a strategic review unless core assumptions have broken:
→ Customer relevance
→ Capital discipline
→ Leadership alignment
And boards don’t appoint interim leaders unless they’re preserving optionality while rethinking the company’s entire direction.
At Eagle Talon, we read these moments as signals, not noise.
We ask:
• What decision loop failed?
• What’s the board trying to fix?
• What kind of operator is needed now?
Sometimes leadership changes reset the thesis immediately — when the incoming CEO brings a known track record.
But more often, these changes test investor judgment: Is this the right leader at the right time for this business?
Turnarounds get plenty of airtime.
But most fail to deliver sustained shareholder value.
Not because CEOs and boards lacked vision — but because they misjudged what really needed fixing, or underestimated how long it would take.
That’s where we focus: assessing whether the CEO is the right match for the company’s stage — and whether this leader can actually unlock value.
🔗 Read the full article: Kenvue Yo-Yoes After Tylenol-Maker Unveils New CEO, Strategic Review