Shareholder capitalism is anything but good for shareholders
In February, Kraft Heinz’s new CEO, Steve Cahillane, did something unusual for an executive barely six weeks into the job. He paused the company’s planned breakup —the move, investors had been told, that would “unlock shareholder value.” He also announced $600 million of fresh spending on marketing , sales, and R&D. The same release reported a loss of nearly $6 billion for 2025, driven by…
Kraft Heinz CEO Steve Cahillane recently halted the company's planned breakup, contrary to what investors had been told would "unlock shareholder value." He also disclosed a $600 million increase in spending on marketing, sales, and research and development. However, the company reported a loss of nearly $6 billion for 2025, largely due to goodwill impairments.
This strategic reversal comes after Kraft-Heinz faced significant financial losses and scrutiny over its accounting practices. Warren Buffett had previously criticized the company, calling its actions "a mistake."
Written by urgent.news from Fast Company's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
