Nestle's Paul Bulcke Steps Down Earlier Than Expected, Pablo Isla Named New Chairperson

Nestlé S.A.'s board of directors on Tuesday, named Pablo Isla to be the new Chairman, effective from Oct. 1, after his predecessor Paul Blucke's decision to step down from the board earlier than anticipated.

"I have full trust in Nestlé's new leadership and firmly believe this great company is well positioned for the future. 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. I wish the entire Nestlé family every success in the future." Bulcke said.

Nestlé further appointed Dick Boeras as lead independent director and vice chairman of the board of directors, starting from Oct. 1. It also appointed Marie-Gabrielle Ineichen-Fleisch as vice chair of the board of directors, the release said.

"On behalf of the board of directors, I want to express our heartfelt gratitude to Paul for his leadership and unwavering dedication to Nestlé. 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," Isla said.

According to reports, Paul Bulcke was at the helm as Chairman when there was a major scandal involving the company's former chief executive officer Laurent Freixe. He exited the company after an investigation was conducted regarding an alleged romantic relationship he was having with a subordinate.

Freixe was dismissed by Nestlé for his failure to disclose the relationship which went against the company's code of conduct. He was chosen to head a planned revamp of the company, along with being tasked to "restore the company to its traditional strengths," according to Bloomberg.

Bloomberg further said that Freixe's exit was a "career-defining" test for Blucke.