Nestlé announced that Chairman Paul Bulcke will be stepping down on October 1st, in the wake of the recent CEO dismissal. The company has appointed Vice Chair Pablo Isla to take over the chairman role earlier than planned.
Bulcke, who has been facing criticism from investors for poor performance and instability, decided to accelerate his departure to allow for a smooth transition. The Financial Times reported on the pressure he was under last week.
“This is the right moment for me to step aside and accelerate the planned transition, allowing Pablo and Philipp to advance Nestlé’s strategy and guide the company with a fresh perspective,” Bulcke said in a statement.
The change follows the recent ousting of CEO Laurent Freixe due to a romantic relationship with a subordinate. Philipp Navratil has been appointed as the new CEO, marking the third leadership change in just over a year.
Nestlé, once a steady growth company, has been facing challenges in recent years with sluggish sales and internal missteps. The company’s stock has fallen by 35% since the beginning of 2022.