Nestle(US:NSRGY) Sou Hu Cai Jing·2025-09-02 11:22Core Viewpoint - Nestlé's CEO, Mark Schneider, was dismissed due to a romantic relationship with a subordinate, raising questions about internal power dynamics and governance within the company [2][6][8]. Group 1: CEO Dismissal - Mark Schneider, who had nearly 40 years of experience at Nestlé, was appointed CEO in September 2024 but was dismissed just a year later due to a reported romantic relationship with a direct report [4][6]. - The company stated that Schneider violated the "Code of Business Conduct" and would not receive any severance pay, indicating a strict stance on such matters [6][8]. - Internal complaints about Schneider's relationship led to an investigation, which initially found no basis for the claims, but subsequent evidence from surveillance footage prompted a swift dismissal [8][10]. Group 2: Company Performance - During Schneider's tenure, Nestlé experienced a 1.8% decline in sales in the first half of 2025, with the Greater China region seeing a more severe organic growth rate of -4.2% [18]. - The company's stock price fell by 17% during his leadership, lagging behind competitors like Unilever by 12 percentage points [18][20]. - The board's decision to dismiss Schneider may have been influenced by both his personal conduct and the company's underperformance, suggesting a combination of new and old grievances [18][20]. Group 3: Internal Dynamics and Future Challenges - The dismissal of Schneider coincided with multiple crises for Nestlé, including investigations into water pollution and product recalls, highlighting management vulnerabilities [21]. - The new CEO, Nespresso's former head, faces significant challenges in continuing Schneider's transformation strategy while restoring investor confidence and internal stability [23][25]. - Nestlé has seen a 60% turnover rate in its board over the past five years, with frequent changes in the CEO position, which may lead to strategic inconsistency and employee uncertainty [27][29].