Nestlé Faces Investor Revolt as Chairman Paul Bulcke Pressured to Resign Amid Executive Turmoil

Nestlé is coming under mounting pressure from investors to replace chairman Paul Bulcke following the abrupt dismissal of two chief executives within a year. The abrupt dismissal of Laurent Freixe, who did not disclose an affair with a junior colleague, has raised questions regarding the leadership stability and governance of the company.

The removal of Freixe comes weeks after the previous CEO, Mark Schneider, left abruptly. Shareholders argue that Bulcke, who has held the chair since 2017, ought to have stepped down when Schneider departed. Alexandre Stucki, replacing founder family investors, added that Bulcke's presence undermines faith in Nestlé's leadership.

Bulcke, aged 70, was Nestlé's chief from 2008 to 2016 and has worked for the firm since 1979. Shareholders are calling for an earlier transition despite his February announcement that he intends to retire in 2026. Shareholders have also been concerned about Nestlé's recovery after the pandemic, as sales volume fell in 2023 after price hikes aimed at cushioning rising raw material costs.

Bulcke was re-elected last April on an 84.8% vote—a significant drop from his 96% support in 2017. Nestlé maintains the two CEO resignations were coincidental and Freixe's actions defied its code of conduct. The two consecutive leadership crises have raised questions among shareholders whether the board is doing a sufficient job of oversight and strategy.

Being the largest food packaging firm globally, Nestlé's decision-making has global implications. Current drama represents a break point for the Swiss behemoth, with shareholders demanding accountability and a vision for the future.