Key Points
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Nestle chairman steps down suddenly after the CEO’s firing.
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Investors fear governance turmoil rocking the Swiss-based food giant.
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Succession questions loom large as leadership vacuum unsettles markets.
On Monday, the chairman of Nestle SA said he was stepping down, just a few days after Chief Executive Officer Mark Schneider was fired without warning. The two departures have made investors nervous and raised new questions about how the world’s largest food and drink company is run.
Paul Bulcke, the chairman of the board, said he would step down right away. He had been with Nestle for 44 years and had been CEO for eight years before becoming chairman in 2017. Schneider was fired last week after disagreeing with directors about how quickly Nestle was moving toward health and wellness products. His resignation came as a shock.
Chairman of Nestle resigns after CEO is fired
Nestle backed Bulcke’s choice and named Henri de Castries, the former head of AXA SA and current vice chairman of Nestle, as interim chair. The company is starting a worldwide search for people to fill both positions permanently.
According to a report by the Punch news, Jon Cox, an analyst at Kepler Cheuvreux in Zurich, said, “The fact that Paul Bulcke and Mark Schneider both resigned within days of each other shows that there are deep divisions within the board.” “Investors will be worried about strategic drift at such a bad time.”
Schneider, who came from Fresenius SE in 2017, was credited with making the company more profitable by focusing on pet food, coffee, and nutrition. But people close to the situation said that tensions grew between him and Bulcke over buying and selling companies, with some directors pushing for quicker moves into health-focused and plant-based products.
Shareholders are worried about the leadership crisis
The change in leadership has made the markets nervous. On Monday in Zurich, Nestle shares fell 2.7 percent, adding to the losses from last week. Klaus Bühler, a portfolio manager at Union Investment in Frankfurt, said, “The way this transition is being handled is a mess.” “The uncertainty is hurting people’s faith in Nestle’s long-term plan.”
Bulcke, who is 70 years old, was seen as a steady hand on the board, connecting Nestle’s past and future plans. His sudden departure, just days after Schneider was fired, has led to rumors of power struggles within Europe’s largest food group.
The departure of Nestle’s chairman raises questions about who will take over
Nestle said that stability and continuity will be the most important things to look for in new leaders. Internally, Chief Financial Officer François-Xavier Roger and Nespresso head Guillaume Le Cunff are seen as possible CEO candidates. Externally, other names are also being looked at.
Still, analysts say that losing both Bulcke and Schneider at the same time could slow down decision-making at a time when input costs are rising and competition from Unilever and Danone is getting stronger. Bruno Monteyne of Bernstein Research said, “This isn’t just about personalities; it’s about whether Nestle can keep going in a tougher environment.”
Nestle said that its core businesses, like Purina pet care and Nescafé coffee, are still strong, but it also said that it will take time to win back investors’ trust.
