Nestlé shareholders are pressing chairman Paul Bulcke to step down before his scheduled departure, after two chief executives were forced out in just over a year. The Financial Times reported that major investors have lost confidence in Bulcke’s leadership and handling of corporate governance.
The latest crisis followed the dismissal of Laurent Freixe, appointed in 2024, who was sacked for failing to disclose a relationship with a subordinate. Nestlé deemed the conduct a clear breach of company policy and terminated his contract without severance. His removal came less than a year after the board had already forced out his predecessor, Mark Schneider.
Philipp Navratil, previously head of Nespresso, has since been named chief executive. But investors argue the back-to-back departures reveal deeper failings in board oversight. One top-30 shareholder told the Financial Times: “It’s a matter of decency and respect that Bulcke resigns from the position and not wait until April next year.”
Bulcke, who became chairman in 2017 after nearly a decade as chief executive, has said he will hand over to chair-designate Pablo Isla, the former Inditex boss, in April 2026. Long-term investors, including J Stern’s Christopher Rossbach, have urged the board to accelerate the transition, stressing that Isla is already active in board discussions and could provide immediate stability.
Shareholder discontent was evident even before Freixe’s dismissal. At the April annual general meeting, nearly 10 per cent voted against Bulcke’s re-election and 5.4 per cent abstained. The unusually high dissent reflected growing concern about his stewardship of the board.
Nestlé has defended its actions, maintaining that the two CEO departures were unrelated. It said Freixe’s conduct represented a serious breach of internal standards and insisted the board acted swiftly to protect the company’s integrity. But investors say the succession missteps have compounded reputational risks and undermined confidence in the group’s governance framework.
The governance turmoil comes as Nestlé, the world’s largest food company, confronts slowing sales in mature markets, rising costs and growing scrutiny over its health and sustainability record. For shareholders, stability at the top is seen as essential to navigating these headwinds.
With a designated successor already in place, the pressure on Bulcke to step aside early is likely to intensify. The coming months will be a critical test of Nestlé’s ability to restore investor trust and demonstrate its commitment to stronger boardroom accountability.