Nestlé chairman Paul Bulcke to step down amid CEO romance scandal
Vice chairman Pablo Isla will assume the role Oct. 1 as the Swiss food giant accelerates a planned leadership handover following the dismissal of CEO Laurent Freixe
Nestlé said Tuesday that Chairman Paul Bulcke has decided to step down, accelerating a planned transition and naming Vice Chairman Pablo Isla as his successor effective Oct. 1. The move follows the abrupt dismissal last week of Chief Executive Laurent Freixe for failing to disclose a romantic relationship with a subordinate.
"This is the right moment for me to step aside and accelerate the planned transition," Bulcke said in a statement released by the company. Bulcke had previously planned to hand the chairmanship to Isla in April 2026 but moved the timetable forward amid investor and governance pressure.
Nestlé confirmed that Freixe, 63, was sacked without severance pay after an internal probe determined he failed to disclose an intimate relationship with a direct report. The company said the dismissal followed a review triggered by a complaint submitted through its anonymous hotline.
The Financial Times reported last week that investors had urged Bulcke to step down after Freixe became the second chief executive to depart in just over a year. Nestlé did not disclose whether the board discussed additional governance measures when announcing the accelerated handover.
A Swiss blog reported earlier this month that a senior executive said to be Freixe’s mistress allegedly caught him in a Zurich hotel with the subordinate and then filed the complaint that launched the probe. Nestlé described details of the internal inquiry only in general terms, saying it had followed company policies and employment rules.
Pablo Isla, who will take over as chairman on Oct. 1, has served as vice chairman and will assume the role earlier than initially planned. Nestlé did not provide further details about changes to the board or additional leadership adjustments tied to the scandal.
The departure of a CEO for undisclosed personal relationships has put renewed focus on corporate governance at the world’s largest food company. Investors and governance analysts have increasingly scrutinized disclosures around personal conduct and conflicts of interest, saying prompt and transparent handling of such matters is important for board accountability and investor confidence.
Nestlé’s announcement did not address compensation or contractual details for the departing chief executive beyond the company’s statement that Freixe left without severance. The company said its board will continue to review governance and compliance procedures in the wake of the episode.
Bulcke has been a central figure in the Lausanne-based company’s leadership for years, and his earlier plan to hand the chairmanship to Isla in April 2026 was part of a staged succession. The accelerated timetable reduces that interval and installs Isla immediately as chair amid heightened investor scrutiny and board focus on leadership stability.
Nestlé did not specify whether its succession acceleration was tied to any broader strategic changes for the company’s operations or management structure. The board said it remains committed to the company’s long-term strategy and to maintaining continuity in executive leadership during the transition.
