Ben & Jerry’s says its parent company Unilever unlawfully fired its CEO David Stever over disputes involving the brand’s social mission and taking a stance on polarizing political issues.
In an amended complaint filed in the Southern District of New York late Tuesday, the ice cream brand known for its outspoken views on human rights and the environment, said that UK-based Unilever’s dismissal of Stever violated a merger agreement which prevents the unilateral removal of Ben & Jerry’s CEO.
The 2000 agreement stipulates that the CEO’s removal can only occur “after good faith consultation with, and the participation in the discussion of, an advisory committee of the Company Board,” according to the Vermont-based company’s complaint. The independent board, it says, was established for communicating the brand’s social mission and brand identity.
Ongoing clashes
Ben & Jerry’s independent board and Unilever have consistently clashed over the brand’s public stance on social matters. In 2022, Ben & Jerry’s sued Unilever for stopping the company from halting sales of its products in the occupied West Bank. A federal judge later rejected the request.
“For over four decades, the company has pursued its unique Social MIssion via its public, progressive stances on issues such as migrant justice, LGBTQ+ rights, Black Lives Matter, GMO labeling, and a variety of other economic and social causes affecting historically marginalized communities,” the complaint states. “Unilever has repeatedly halted Ben & Jerry’s social mission in direct contravention of the settlement agreement.”
Stever, the ousted CEO, had been a 34-year veteran of the company, starting his career in 1988 as a tour guide, according to Ben & Jerry’s website. Before assuming the role of CEO, he served as the company’s chief marketing officer for 12 years. His appointment to the top post marked the first time a staff member had been promoted to CEO from within the company.
Ben & Jerry’s initial lawsuit, filed in November 2024, accused Unilever of blocking it from speaking out in support of Palestinian refugees, thereby engaging in “inappropriate muzzling.” According to the complaint, Unilever threatened “Ben & Jerry’s personnel should the company speak out regarding issues that Unilever prefers to censor.”
On March 3, Unilever took steps to remove and replace Stever as CEO. The lawsuit alleges that rather than performance issues, Unilever’s “motive for removing Mr. Stever is his commitment to Ben & Jerry’s social mission and essential brand integrity and his willingness to collaborate in good faith with the independent board.”
Neither Unilever nor Ben & Jerry’s responded to CBS MoneyWatch’s requests for comment.
Megan CerulloMegan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News 24/7 to discuss her reporting.
