Nestlé Chairman Paul Bulcke resigns after CEO Laurent Freixe’s dismissal over ‘undisclosed relationship’

On Tuesday, Swiss -based food and beverage giant Nestlé announced that President Paul Bulcke decided to resign and that he would replace Pablo Isla, former Inditex CEO from October 1.

“Nestlé SA’s Board of Directors Pablo Isla’s Paul Bulcke’s decision to resign from the board earlier than planned will be valid on October 1,” he said.

His resignation comes two weeks after Laurent Freixe was dismissed as a CEO because of a romantic romantic relationship that is not directly explained by an AST.

Bulcke’s role was questioned

Reuters, analysts and shareholders questioned the role of Bulcke after the announcement of Freixe’s relationship with a subordinate, and questioned that Reuters was only one year after the leadership of the Kitkat chocolate bar and Nescafé coffee machine.

Bulcke, who will take the role of ‘Honorary President’, added that the new leadership will bring a “new perspective ..

Nestlé concerns

Reuters, Nestlé faces a challenging difficulty with investors and analysts inviting to facilitate their operations in a challenging consumer market.

The increase in income has slowed down, the company’s shares have fell by more than 40% since 2022, and costs have increased significantly. Debt levels have risen on competitors like Unilever.

Earlier this year, Nestlé announced that Bulcke would leave next year, after increasing the concerns of the investor’s share price, leadership problems and doubts about the old corporate governance model.

Bulcke’s support from the shareholders was decreasing.

It was re -elected in April, but with only 84.8% shareholder support for presidents in Switzerland. In 2017, almost 96% support.

In addition, Dick Boer was appointed as the Vice Chairman and Vice President of the Board of Directors since October 1, while Marie-Gabrielle was appointed as the Vice President of the Board of Directors.