Outlook Business Desk
Food and beverage giant Nestle, best known for brands such as KitKat, Maggi, and Nescafe, announced on Tuesday that its chairman Paul Bulcke has decided to step down from his position. He will be replaced by Pablo Isla, the former CEO of Inditex, who is set to assume the role of chairman starting October 1.
Bulcke’s resignation comes earlier than expected, just two weeks after CEO Laurent Freixe was dismissed due to an undisclosed relationship with a subordinate, triggering questions about leadership at Nestle.
Paul Bulcke said this is the right time to step aside and speed up Nestlé’s leadership transition. He will continue as honorary chairman while Pablo Isla brings what he described as “fresh perspective.”
Shareholders had already raised concerns about Bulcke’s role following Freixe’s dismissal. His support was weakening, with re-election in April receiving only 84.8% approval, far lower than his 2017 backing of nearly 96%.
Nestle is also facing mounting pressure with slowing revenue growth and tougher consumer demand. Investors want the company to simplify operations, reduce expenses, and match competitors who are restructuring aggressively to stay competitive.
The company’s stock has also fallen over 40% since 2022, while rising debt levels and higher costs have added pressure. Nestlé now has heavier debt compared to peers like Unilever.
Nestle had earlier stated that Paul Bulcke would leave his role next year. The decision reflected growing investor concerns over outdated governance practices, falling share performance, and increasing dissatisfaction with the company’s leadership.
Along with Pablo Isla’s appointment, Dick Boer will become Lead Independent Director and Vice Chairman of Nestle, while Marie-Gabrielle Ineichen-Fleisch has been named Vice Chair of the Board from October 1.