Although Nestlé is a member of the ECA, none of its employees were present at the reception, and it remains unclear whether the Swiss confectioner has sent any representatives to Malta.
In another late-night 'ad hoc announcement' — the same tactic used to disclose Freixe’s firing — Nestlé confirmed that Bulcke will step down from his role as Chairman on 1 October 2025, six months earlier than scheduled.
The move follows intensifying investor pressure after Freixe’s sudden dismissal and broader unease over governance at the world’s largest food and beverage company.
Bulcke, who joined Nestlé in 1979 and served as CEO from 2008 to 2016 before becoming Chairman in 2017, will assume the honorary title of Chairman Emeritus. He will be succeeded immediately by Pablo Isla, Nestlé’s current Vice Chairman and former chief executive of Inditex.
"On behalf of the Board of Directors, I want to express our heartfelt gratitude to Paul for his leadership and unwavering dedication to Nestlé," said Isla in a statement.
"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."
Dick Boer has been appointed Lead Independent Director and Vice Chairman of the Board of Directors beginning 1 October. In addition, Marie-Gabrielle Ineichen-Fleisch has been appointed Vice Chair of the Board of Directors.
Investor Trust at Breaking Point
Bulcke’s early departure comes amid a backdrop of repeated leadership upheavals. Freixe’s removal — triggered by his failure to disclose a relationship with a direct subordinate — was Nestlé’s second CEO exit in just over a year.
His predecessor, Mark Schneider, was ousted in 2024.
An analyst in Malta told cocoaradar.com that these scandals have eroded confidence in the board’s ability to uphold governance standards. Several major investors also publicly urged Bulcke to accelerate his exit, citing a loss of shareholder trust.
Over the weekend, Christopher Rossbach of J Stern & Co said Bulcke should “resign now rather than stay until next year,” warning that any delay would prolong instability.
Market Performance Adds to Pressure
Governance failures have coincided with weakening financial results. Nestlé’s share price has fallen by around 40% since 2022, while sales growth has stagnated. Rising debt levels and a sprawling portfolio of nearly 2,000 brands have intensified calls for a leaner, more focused strategy.
“Investors want Nestlé to simplify and concentrate on its strongest businesses,” one analyst noted. “If leadership change doesn’t come with sharper execution, market pressure will only intensify.”
New Leadership, Fresh Expectations
With Isla stepping in as Chairman and Philipp Navratil recently appointed CEO, analysts see a chance for a reset. Navratil, formerly head of Nespresso, is credited with streamlining operations and accelerating decision-making. CFO Anna Manz has also hinted that similar restructuring may be in store at group level.
Still, investor scepticism lingers. “Governance credibility takes time to rebuild,” one investor warned. “If Nestlé’s new leadership doesn’t act decisively, activists could push for deeper restructuring — or even a break-up of the company.”
CocoaRadar Comment
For a company that touches billions of consumers globally with brands such as KitKat, Nestlé’s leadership turmoil is more than a boardroom drama: it underscores how trust, governance, and accountability shape market confidence.
With two CEO departures in as many years and a chairman stepping down early, the spotlight now turns to Isla and Navratil to stabilise the business, rebuild credibility, and chart a sustainable path forward.
More on the crisis at Nestlé:
Anthony Myers
Anthony Myers
Anthony Myers
Anthony Myers
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