THE CLOROX CO. (=) : Internal CEO Candidate Emerges: Structural Changes Announced; Two Executives Elevated as CEO Search Evolves

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THE CLOROX CO. (=) : Internal CEO Candidate Emerges: Structural Changes Announced; Two Executives Elevated as CEO Search Evolves

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discussions with CLX re: today’s press release indicate that this is simply another step toward furthering the

management’s ability to improve execution and accelerate growth. We do not expect the company to stand still, though

we also find the timing a bit odd given a) the news of Ms. Rendle’s decision was made just a few weeks ago (i.e., it is

far more sensible to come to the Street with one announcement on decisions of this magnitude), and b) the next CEO

may have very different views on what he / she sees as the appropriate internal reporting structure, so why not wait 3-

6 months until a CEO hiring decision has been made? Nevertheless, we think it has become very clear that Mr. Hyder

has emerged as the key internal candidate that the Board would consider should it fail to find an external candidate for

CEO.

We Still See External Candidates as More Likely | Candidate with Portfolio Strategy Likely an Important Factor

CLX has long suffered challenges around category growth and market share execution, which were further complicated

by disruptions from a cyberattack and ERP transition. These challenge areas will be inherited by the next CEO. Skills

needed: CLX’s next CEO will need strong operational experience, a deep understanding of the US consumer, depth

with the evolving retail landscape, first class A.I. understanding up and down the supply chain, category dynamic

understanding with private label, and importantly, portfolio strategy (CLX likely has some bigger portfolio decisions

ahead).

As we have written previously, we still view external candidates as more likely to take the CEO role and see a deep