Paul Bulcke, chairman of Nestlé, resigned after the dismissal of CEO Laurent Freixe about 'unknown relationship'

Switzerland-based food and beverage giant Nestlé announced on Tuesday that its chairman, Paul Bulcke, has decided to retire and will be replaced by former InditeX CEO Pablo Isla from October 1st. “The Board of Directors of Nestlé SA announced that Pablo Isla will be chairman on October 1 after the decision by Paul Bulcke to retire earlier than planned,” the company said in a release. His resignation comes two weeks after Laurent Freixe was rejected as CEO due to an ‘unknown romantic relationship with a direct subordinate’. Bulcke’s role has questioned analysts and shareholders, questioning the role of Bulcke after the release of Freixe’s alleged relationship with a subordinate, which led to his removal just a year after adopting the leadership of the Kitkat Chocolate Bar and Nescafé Coffee Maker, Reuters reports. “It’s the right moment for me to set aside and accelerate the planned transition,” Bulcke, who will take on the role of ‘honorary chair’, said in a statement, adding that the new leadership would bring a ‘fresh perspective’. Nestlé Concern has a difficult challenge with investors and analysts who request it to streamline its operations in a difficult consumer market as competitors reduce costs and even restructuring to improve their competitiveness, Reuters reports. The growth of turnover has slowed, the company’s shares have fallen by more than 40% since 2022, and the costs have risen significantly. Debt levels rose above that of opponents like Unilever. Earlier this year, Nestlé announced that Bulcke would leave next year, a step that came after investors’ concerns about the company’s share price, leadership issues and doubts about its outdated corporate management model grew. Bulcke’s support from shareholders has also declined. He was re -elected in April, but with only 84.8% shareholder support, which is below the usual level for chairmen in Switzerland. In 2017, he had almost 96% support. In addition, from October 1, Dick Farmer was appointed chief independent director and vice-chairman of the Board of Directors, while Marie-Gabrielle Ineichen-Fleisch was appointed Vice Chairman of the Board of Directors.