Sara Lee Chairman, CEO Barnes resigns over health concerns

Global consumer goods firm Sara Lee Corp today said Brenda C Barnes will step down as chairman and chief executive officer of the company on health grounds.

The company, which has a significant presence in India, has started a process to select a new CEO and is looking inside and outside the company, it said in a statement.

Barnes has been on medical leave since May 14, 2010, after suffering a stroke. She is leaving the company so that she can focus on her health.

"We fully support Brenda's decision to step down as Chairman and CEO so she can devote all of her time and energy toward improving her health," the company said.

In addition, the company said that Barnes has resigned from Sara Lee's board of directors and will not stand for re-election at the company's 2010 annual stockholders meeting in October.

The company said it board has started a process to select a new CEO and will consider internal and external candidates to succeed Barnes. During the process, Marcel Smits will continue as interim CEO and Mark Garvey will continue as interim chief financial officer.

In addition, Independent Director James S Crown, who has been performing the duties of chairman in the absence of Barnes, will continue to lead the Office of the Chairman. The US-based company had formed an Office of the Chairman, comprising of Crown, Smits and Christopher John Fraleigh, the CEO of its North American retail and food service operations, after Barnes went on medical leave.

Sara Lee said it will sell its 51 per cent stake in its joint venture with Indian company Godrej to Godrej Consumer Products Ltd (GCPL) for 185 million euros (about Rs 1,065 crore) in May.

The 15-year-old joint venture, Godrej Sara Lee, primarily markets insecticides, including leading mosquito repellent brands Good Knight and Hit, air freshener Ambi Pur and shoe polish Kiwi in India.