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

Core Insights - Nestlé's chairman Paul Bulcke will step down, with former Inditex CEO Pablo Isla taking over on October 1 [1] - Bulcke's resignation follows the dismissal of CEO Laurent Freixe due to an undisclosed romantic relationship, raising questions about Bulcke's leadership [2] - Bulcke stated that it is the right time for a transition to new leadership for a fresh perspective [3] Company Challenges - Nestlé is under pressure from investors and analysts to streamline operations amid a challenging consumer market [3] - The company has experienced slowed revenue growth, with shares dropping over 40% since 2022, and rising costs [4] - Nestlé's debt levels have surpassed those of competitors like Unilever, contributing to investor concerns [4] Leadership Changes - Bulcke's shareholder support has declined, with only 84.8% backing during his re-election in April, compared to nearly 96% in 2017 [5] - Dick Boer will become Lead Independent Director and Vice Chairman, while Marie-Gabrielle Ineichen-Fleisch will serve as Vice Chair of the Board starting October 1 [5]