Online Reporter
Nestlé SA chair Paul Bulcke will step down early after investors questioned his handling of the ouster of the food company’s former chief executive officer due to an undisclosed romantic relationship with a subordinate. Pablo Isla, who had been due to succeed Bulcke next year, will take over on October 1, the Swiss foodmaker said on Tuesday.
Nestlé previously said that both Bulcke and Isla oversaw the probe that led to CEO Laurent Freixe’s firing. A veteran of almost half a century at the KitKat and Nespresso maker, Bulcke was under intense scrutiny over the upheaval and removal of Freixe, whom he had described as a “perfect fit” to be CEO on his promotion last year.
The 71-year-old said Freixe’s sacking, which only came after two probes into his behaviour, was “a necessary decision” in line with Nestlé’s values and governance. But amid media speculation, a Nestlé spokesperson denied Bulcke had sought to shield Freixe during the initial probe.
The scandal had raised issues of accountability and judgment for a number of investors, including Christopher Rossbach, chief investment officer of J Stern & Co.
“Pablo Isla will be the first external chair of Nestlé. He has a tremendous opportunity to improve board experience, accountability and governance,” Rossbach told Bloomberg. “He also has a tremendous responsibility to address the issues that led to the leadership issues and enable Nestlé to return to the paragon of growth and value creation it has been throughout its history.”
As chair, Bulcke presided over unprecedented management turmoil for a company that had only three CEOs between 1981 and 2016. He spearheaded the selection of both Freixe and, before that, Mark Schneider, who was also pushed out after nearly eight years as Nestlé struggled to revive growth.
Philipp Navratil, a veteran of the Nespresso coffee empire, was appointed CEO this month. Working at Nestlé since 1979, Bulcke has served in numerous management roles across the globe, and as CEO for almost nine years before becoming chair in 2017, 2005 to 2011, and chair of the same company from 2011 until 2022. — Bloomberg
