Diageo's Stellar Management & Stewardship

Morningstar analysts hold Diageo's management in high regard for consistently focusing on shareholder value 

Thomas Mullarkey, CFA 19 December, 2012 | 6:00AM

We believe that Diageo (DGE) is well managed and we hold its management team in high regard. The recent deal to buy Mey Icki at less than 10 times EV/EBITDA shows Diageo's disciplined approach to acquisitions. Additionally, management's willingness to walk away from the Cuervo deal shows that they are exemplary stewards of shareholder capital and consistently seek to generate excess economic returns.

Management & Board Setting a Clear Path

Paul Walsh, a veteran who started at Grand Metropolitan in 1982 and spent a decade running Pillsbury, stepped into the CEO role in 2000. Walsh has been the driving force behind Diageo's strategy to shed noncore businesses, including Burger King and Pillsbury, in order to focus on spirits.

Franz Humer, a director since 2005, was appointed board chairman in July 2008 following the retirement of James Blyth, who presided as chairman for eight years.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Diageo PLC2,690.00 GBX-1.88

About Author

Thomas Mullarkey, CFA  is an equity analyst at Morningstar.

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