Bulcke Steps Down Early; Pablo Isla Named Successor
Board Faces Scrutiny After Executive Scandal
Paul Bulcke, the 71-year-old chairman of Nestle, the world's largest food company, is stepping down from his position.
Paul Bulcke, Chairman of Nestle (right), speaking at the regular shareholders' meeting held near Equiblanc, Lausanne, Switzerland, on April 16 (local time). Photo by AFP Yonhap News
On September 16 (local time), international media outlets including AFP reported that Nestle announced through a press release that Chairman Bulcke would resign earlier than originally planned, and that Vice Chairman Pablo Isla would assume the role of chairman on October 1.
Chairman Bulcke stated, "The time has come for me to step down and accelerate the planned transition," adding, "It is the right moment for Pablo and Philippe (the new CEO) to drive Nestle's strategy forward."
Bulcke, who is from Belgium, joined Nestle in 1979 and has served as CEO since 2008 and as chairman of the board since 2017. He was originally scheduled to lead the board until the regular shareholders' meeting in April next year, but it appears that his resignation has been moved forward due to a recent management scandal.
The Nestle board of directors dismissed former CEO Laurent Freixe on September 1, citing violations of the company's code of conduct. Former CEO Freixe stepped down after it was revealed he had a secret romantic relationship with a direct subordinate, and Philippe Navratil, who previously oversaw Nespresso, was appointed as the new CEO. However, some shareholders are now raising questions about the board's responsibility regarding these sudden personnel controversies.
Pablo Isla, who will succeed Bulcke, served as CEO and chairman of the Spanish fashion group Inditex (which owns Zara, Bershka, and others) from 2005 to 2022. He joined the Nestle board in 2018 and was appointed vice chairman last year.
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