Nestlé has announced that long-serving chairman Paul Bulcke will step down later this year, with vice chairman Pablo Isla confirmed as his successor. The leadership transition will take effect on 1 October 2025, closing months of speculation over the company’s governance.
Storyboard18 reported that the board of directors formally approved Isla’s promotion at its latest meeting, bringing forward a succession plan originally scheduled for 2026. Isla, the former Inditex chief widely credited with transforming Zara into a global retail powerhouse, will assume the chairmanship, while Bulcke will be named honorary chairman in recognition of his service.
Bulcke, who became chairman in 2017 after nearly a decade as chief executive, said the timing was right to advance the handover. “I have full trust in Nestlé’s new leadership and firmly believe this great company is well positioned for the future,” he said. “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.”
The move follows sustained shareholder pressure. The investors had urged Bulcke to leave before 2026, citing governance concerns after two chief executives were ousted in succession. The dismissal of Laurent Freixe earlier this year for failing to disclose a relationship with a subordinate compounded unease triggered by the earlier removal of Mark Schneider.
Isla, who joined Nestlé’s board in 2018 and became vice chairman in 2022, takes the role with strong support from both directors and shareholders. His track record of disciplined management and sustainability-driven reforms at Inditex is seen as aligning with Nestlé’s strategic priorities.
“On behalf of the board of directors, I want to express our heartfelt gratitude to Paul for his leadership and unwavering dedication to Nestlé,” Isla said, in comments published by Storyboard18. “Paul’s wisdom and commitment have shaped the company and laid the groundwork for our next chapter. In recognition of his longstanding and dedicated service, we have named Paul as honorary chairman.”
The reshuffle also strengthens the board’s oversight. Dick Boer, the former chief executive of Ahold Delhaize, will become lead independent director and vice chairman from 1 October, while Marie-Gabrielle Ineichen-Fleisch, Switzerland’s former top trade official, has been appointed vice chair.
Bulcke’s exit marks the close of a pivotal era. As chief executive, he steered Nestlé through the financial crisis and expanded its reach in emerging markets. His chairmanship, however, has been clouded by questions over succession planning and board accountability.
For investors, Isla’s elevation represents a reset. His experience in global brand management and agile supply chains is expected to help Nestlé pursue growth in health, nutrition and sustainability categories.
The group, which employs more than 270,000 people worldwide, continues to grapple with slowing sales in developed markets, rising costs and scrutiny over the health profile of its products. Analysts say the task for Isla and chief executive Philipp Navratil will be to stabilise governance and accelerate transformation while rebuilding investor trust.