Nestle chairman to step down early after CEO ouster

Reuters: Nestle said on Tuesday its chairman Paul Bulcke would hand over to former Inditex CEO Pablo Isla on October 1, accelerating a changing of the guard at the Swiss food giant after an unprecedented period of managerial turmoil.

The decision comes just two weeks after Laurent Freixe was abruptly fired as CEO over an undisclosed relationship, and clears the way for new CEO Philipp Navratil and Isla to take full charge of the company that has struggled in recent years as sales growth stalled and debt rose.

Questions were raised about Bulcke’s position by analysts and shareholders following the revelations about Freixe’s romantic relationship with a subordinate, which led to his ouster just a year after he had taken the reins at the maker of KitKat chocolate bars and Nescafe coffee.

In a brief statement, Bulcke said the Vevey-based company was well positioned for the future as he moved forward the handover that had previously been scheduled for April next year.

“This is the right moment for me to step aside and accelerate the planned transition,” Bulcke, who will take on the role of ‘honorary chairman’, said in a statement, adding the new leadership would bring a “fresh perspective”.