Nestlé chairman Paul Bulcke is stepping down earlier than planned in the wake of the shock departure of CEO Laurent Freixe just over two weeks ago.
The world’s largest food company had announced in June Bulcke would relinquish the board role in April next year. Bulcke has worked for Nestlé for almost five decades, including nine years as chairman and almost nine years as CEO.
That announcement was made before Nestlé veteran Freixe was dismissed early in September because of an “undisclosed” relationship with an employee.
Philipp Navratil, the CEO of Nestlé’s coffee business Nespresso, was named as Freixe’s immediate successor.
In a statement issued late yesterday (16 September), the Kit Kat maker said Bulcke will now step down as chairman. Pablo Isla, Nestlé’s lead independent director, will take over from 1 October. Isla was previously lined up to replace Bulcke next April.
“This is the right moment for me to step aside and accelerate the planned transition, allowing Pablo and Philipp to advance Nestlé’s strategy and guide the company with a fresh perspective,” Bulcke said.
“I have full trust in Nestlé’s new leadership and firmly believe this great company is well positioned for the future.”
Earlier this week, a report emerged in The Financial Times that investors were pressing for the prompt departure of Bulcke due to concerns over corporate governance and the loss of a second CEO since Mark Schneider’s sudden departure in August last year.
Citing a period of instability and underperformance under Bulcke’s leadership, shareholders had criticised his handling of the investigation into Freixe’s conduct, which they believed deepened concerns about the company’s decision-making processes, according to the FT.
“It’s a matter of decency and respect that [Bulcke] resigns from the position and not wait until April next year,” one top-30 Nestlé shareholder reportedly told the publication, highlighting a loss of trust.
In yesterday’s statement, Isla said: “On behalf of the board of directors, I want to express our heartfelt gratitude to Paul for his leadership and unwavering dedication to Nestlé. Paul’s wisdom and commitment have shaped the company and laid the groundwork for our next chapter.
“In recognition of his longstanding and dedicated service, we have named Paul as honorary chairman.”
Bulcke was CEO for nearly nine years until 2016, when Schneider succeeded him. He became chairman in April 2017.
In the same statement yesterday, Nestlé said Dick Boer will become lead independent director and vice chairman of the board, effective from 1 October.
finance.yahoo.com
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