Provided by John Reville, Oliver Hirt and Richa Naidu
Zurich/London (Reuters) -Nestle has recently been announced that Chairman Paul Bulcke will resign after the emerging investor’s anxiety due to the stock price of Food Group, the term of previous CEO Mark Schneider’s term and concern that its company management model was obsolete.
The 70 -year -old Bulcke support has been abolished for doubt about Nestle recovery after pandemic. The number of sales has been marked as the world’s largest food manufacturer, increased prices to compensate for the rising raw material costs, said four Nestle investors.
There was also dissatisfaction with Bulcke’s faithfulness to Schneider in that difficult period, as well as Nestle’s practice to make former director general. Finally, Schneider was removed in August last year and was replaced by Nestle Veteran Laurent Freixe.
Nescafe’s Instant Coffee and Kitkat Chocolate Bar Made of June 18th. Said that Bulcke, CEO from 2008 to 2016, 2026. April Will appear as chairman and will be replaced by Vice -President Pablo Isla, former chairman and CEO of the Spanish fashion company.
“Nestle is not in crisis mode, but it’s a good time for change,” said Ingo Speic, Sustainability and Corporate Manager Deka Investment -30 Best Nestle Investor, who April 16. April 16 Voted against Bulcke.
“We are big supporters of independent presidents, but for more than a decade, it was no longer independent in Bulcke,” Speyich added. “Nestle in the past was too much like a closed shop.”
Bulcke could not comment on this story.
His withdrawal will mark the end of a career for almost 50 years, where he rose from marketing trainee to the top.
In response to Reuters’ request to comment on this story, Nestle spokesman Christopher Meier said Bulcke had chosen not to seek re -election at the time Freixe was well established and the company’s strategic direction was clear and strong.
“This time ensures a smooth transition, providing a lot of time and space for the new leadership team to settle,” said Meier, noting that the company in June. Reviewed their inheritance plans.
However, Bulcke’s withdrawal time, announced shortly after being re -elected for another year and a year before his compulsory retirement age, was unusual, says analysts and investors.
Bulcke, the chairman from 2017, had to retire in 2027. According to Nestle rules.
Several best investors told Reuters that Reuters have been dissatisfied with Bulcke for many years, some have sought to depart in private or shareholders’ meetings.
“Time was appropriate for Mr Bulcke to retreat for a long time,” said one who refused to be named.
Bulcke’s shareholders’ support decreased. April He won re -election with 84.8% shareholders support. Although, apparently, it was well below level chairs, usually in Switzerland. 2017 He received almost 96%.
“It was a clear sign that many investors no longer appreciated it,” the investor said. “He should not be the chairman first of all – we do not like the CEO would become chairman without calling for periods.”
A new beginning
Two previous powerful Nestle chairmen Peter Brabeck and Helmut Maucher were also CEO.
“Former CEO who are former CEO may be resistant to change,” said the Swiss St. KUNE Twkedler, a Gallen University Corporate Management Expert.
Shareholders also criticized Bulcke’s decision to maintain Schneider when Nestle’s performance fought after 2022.
Adding anxiety was scandals such as Nestle’s banned treatment to clean water in bottles in France, and the supply chain problems in the US. However, when Schneider was finally released, it happened as a shock.
“Safe asylum companies like Nestle should never be surprised by the market,” said one shareholder. “The former CEO just before he had to go with investors with investors.”
The shareholders were also concerned with the price of the group’s shares, which decreased by 42% from 2022 to 2024.
Investors were also worried about the high debt that threatened future benefits. Net debt 2024. At the end of the 19th century, 2.9 -fold -to -adjustable earnings against interest, taxes, depreciation and amortization were compared to 2.5 times more than 2023. At the end of the end.
“Shareholders want only one thing: returns. And if there are no ones, then people are unhappy,” said one investor.
Investors and analysts said the incoming chairwoman, ISLA, showed the strong leadership of Zara-Savior Inditex, delighting a potentially new approach to Growth Nestle.
One of the first priorities for Isla will be defined by another CEO’s profile, said Vontobel analyst Jean-Philippe Bertschy. Freixe is 63, so questions have been raised about how long it will remain in the highest job.
Other tasks will include a solution to what to do with about € 40 billion ($ 47.11 billion) in the French cosmetics giant L’Oreal shares and keep the company fighting a frozen food business.
“We need to make better Nestle,” said Simon Jaeger, manager of the Nestle Investor Flossbach von Storch portfolio. “That is why it is good to breathe in the fresh air in the position of the chairman.
“Inditex” is one of the best -controlled companies in a particularly competitive sector. Pablo Isla played the lead role in this role. And because he already knows Nestle, he’s a good solution. “
($ 1 = 0.8490 euros)
(Reports of John Retill, Oliver Hirt Zurich and Richa Naidu Londoneding Dave Graham and Susan Fenton)
