Nestle Investors Urge Chairman Paul Bulcke to Step Down Amid CEO Departures

Nestle investors are calling for chairman Paul Bulcke to step down due to the departure of two CEOs in over a year, the Financial Times reports. Shareholders question Bulcke's decision-making and governance at the company. Bulcke was re-elected in April with 84.8% of the vote, a significant drop from 2017. Nestle dismissed CEO Laurent Freixe for failing to disclose a romantic relationship with a subordinate.

Nestlé investors have called for Chairman Paul Bulcke to step down following the abrupt dismissal of Laurent Freixe, the second CEO to depart in just over a year. The Financial Times reported that shareholders expressed concerns over governance and Bulcke's decision-making, particularly regarding the handling of investigations into Freixe's conduct. This dismissal, due to an undisclosed romantic relationship, follows Mark Schneider's sudden departure a year prior.

Shareholders told the Financial Times that the dismissal of former Chief Executive Laurent Freixe and the way investigations into his conduct were handled had exacerbated their concerns over governance at Nestle and led them to question Bulcke’s decision-making. Alexandre Stucki, founder of AS Investment Management, which represents founding family investors in Nestle, told the newspaper that Bulcke should have left when Mark Schneider was forced out Nestle investors call for chairman to step down: Report^[1].

The Swiss food giant abruptly dismissed Freixe at the beginning of September for failing to disclose a romantic relationship with a subordinate. Freixe's removal came a year after predecessor Schneider suddenly departed, and 2-1/2 months after Bulcke said he would step down next year Report: Nestle Chairman Ousted Over Decision-Making Concerns^[2]. A Nestle spokesperson told the Financial Times that the two CEO departures were unrelated and that Freixe's conduct was a clear breach of its code of conduct.

Support for Bulcke has been ebbing away due to doubts about Nestle's recovery after the pandemic, investors told Reuters in July. Sales volumes at the world's largest maker of packaged food flagged in 2023 as it increased prices to offset rising raw material costs Nestle investors call for chairman to step down: Report^[1].

In April, Bulcke was re-elected with 84.8% of the vote, a substantial drop from the nearly 96% he received in 2017. Nestlé appointed Philipp Navratil as the new CEO, citing a breach of internal conduct rules. Navratil is recognized for his impressive track record of achieving results in challenging environments and is expected to drive Nestlé's growth plans forward Nestlé replaces CEO Laurent Freixe with Philipp Navratil^[3].