- Nestlé's incoming CEO aims to enhance operational efficiency.
After the unexpected departure of Nestlé's CEO, Mark Schneider (58), the shares of the globe's largest food corporation have seen a decline. The stock dropped by more than two percent during early trading in Switzerland on a Friday.
After a series of underperforming quarters, the board announced Schneider's departure and appointed French national Laurent Freixe (62) as the new CEO. Freixe stated, "My focus is on organic growth." He has been a part of Nestlé since 1986, most recently overseeing the company's operations in Latin America, and is anticipated to boost market share and enhance performance.
The stock decreased following unsatisfactory quarterly earnings, dropping from around 105 Swiss francs in September to below 90 francs. The board chair, Paul Bulcke, was reluctant to confirm during a call with analysts that these results had prompted the leadership change. Freixe expressed his intention to allocate resources towards research and development, productivity, and digital transformation.
Schneider, a German executive, joined Nestlé from healthcare firm Fresenius in 2017. Bulcke commended Schneider's significant influence on the company's environmental sustainability improvements while announcing his departure. "We wish him success in his future professional and personal endeavors."
Following the announcement of Schneider's departure, there were rumors circulating about his possible resignation due to the company's financial struggles. After assuming his position, Freixe implemented a policy to encourage employee resignations, aiming to streamline operations and increase efficiency.
