Latest news with #PabloIsla
Fashion Network
07-07-2025
- Business
- Fashion Network
Former Inditex chairman Pablo Isla to succeed Paul Bulcke as Nestlé chair in 2026
Nestlé has announced that Paul Bulcke, chairman since 2017 and former CEO of the Swiss group, will step down at the company's annual general meeting in April 2026. He will be succeeded by Pablo Isla, former chairman and CEO of Spanish fashion giant Inditex, owner of Zara. The transition follows rising investor dissatisfaction over Nestlé's share performance, post-pandemic strategy, and concerns that the company's corporate governance model was outdated, according to several shareholders quoted by Reuters. Bulcke, 70, had faced declining support, with 84.8% backing his re-election in April 2024, down from nearly 96% in 2017. Investors also expressed discomfort with Nestlé's longstanding practice of promoting former CEOs to chairman roles. Both Bulcke and his predecessors—Peter Brabeck and Helmut Maucher—followed this path. Bulcke served as CEO from 2008 to 2016 and was re-elected for another year in 2024, despite calls for change. Isla, widely credited for Inditex's growth and global strategy execution, is expected to bring a fresh approach to Nestlé's leadership. 'Inditex is one of the best-managed companies in an ultra-competitive sector. Pablo Isla played a leading role in this. And because he already knows Nestlé, he is a good solution,' said Simon Jaeger, portfolio manager at Nestlé investor Flossbach von Storch. Nestlé owns a 40 billion euro ($47.11 billion) stake in French beauty conglomerate L'Oréal, a key asset in its portfolio. One of Isla's first priorities, analysts said, will be defining the profile of the group's next CEO. Laurent Freixe, who replaced former CEO Mark Schneider in August 2024, is 63, prompting questions about succession planning. 'This timing ensures a smooth transition, providing ample time and space for the new leadership team to settle in,' Nestlé spokesperson Christoph Meier told Reuters, adding that the company had reviewed its succession plans in June. Despite Nestlé's statement that Bulcke chose not to seek re-election in alignment with the company's long-term direction, analysts noted the timing was unusual—coming shortly after his re-election and nearly a year before his mandatory retirement age of 72. Bulcke was originally due to retire in 2027. Investor frustration has been mounting in recent years. Several top-30 shareholders voiced concerns over Bulcke's support for Schneider during periods of underperformance, including a 42% drop in share price between 2022 and 2024. By contrast, rivals Unilever and Danone gained 15% and 19%, respectively, over the same period. Additional pressure came from regulatory controversies, including Nestlé's use of banned purification methods for bottled water in France and supply chain issues in the U.S. Investors said the unexpected departure of Schneider—who had continued investor roadshows shortly before his exit—only heightened concerns. Beyond governance, Nestlé's high debt level has drawn scrutiny. Net debt stood at 2.9 times adjusted EBITDA at the end of 2024, up from 2.5 times a year earlier, raising questions about the group's future dividend capacity. 'Shareholders only want one thing: returns. And if they're not there, then people are unhappy,' one investor commented. With Isla's appointment, investors hope for stronger execution and a refreshed leadership style. 'We need better execution at Nestlé,' said Jaeger. 'That's why it's good to have a breath of fresh air in the position of chairman.'
Fashion Network
07-07-2025
- Business
- Fashion Network
Former Inditex chairman Pablo Isla to succeed Paul Bulcke as Nestlé chair in 2026
Nestlé has announced that Paul Bulcke, chairman since 2017 and former CEO of the Swiss group, will step down at the company's annual general meeting in April 2026. He will be succeeded by Pablo Isla, former chairman and CEO of Spanish fashion giant Inditex, owner of Zara. The transition follows rising investor dissatisfaction over Nestlé's share performance, post-pandemic strategy, and concerns that the company's corporate governance model was outdated, according to several shareholders quoted by Reuters. Bulcke, 70, had faced declining support, with 84.8% backing his re-election in April 2024, down from nearly 96% in 2017. Investors also expressed discomfort with Nestlé's longstanding practice of promoting former CEOs to chairman roles. Both Bulcke and his predecessors—Peter Brabeck and Helmut Maucher—followed this path. Bulcke served as CEO from 2008 to 2016 and was re-elected for another year in 2024, despite calls for change. Isla, widely credited for Inditex's growth and global strategy execution, is expected to bring a fresh approach to Nestlé's leadership. 'Inditex is one of the best-managed companies in an ultra-competitive sector. Pablo Isla played a leading role in this. And because he already knows Nestlé, he is a good solution,' said Simon Jaeger, portfolio manager at Nestlé investor Flossbach von Storch. Nestlé owns a 40 billion euro ($47.11 billion) stake in French beauty conglomerate L'Oréal, a key asset in its portfolio. One of Isla's first priorities, analysts said, will be defining the profile of the group's next CEO. Laurent Freixe, who replaced former CEO Mark Schneider in August 2024, is 63, prompting questions about succession planning. 'This timing ensures a smooth transition, providing ample time and space for the new leadership team to settle in,' Nestlé spokesperson Christoph Meier told Reuters, adding that the company had reviewed its succession plans in June. Despite Nestlé's statement that Bulcke chose not to seek re-election in alignment with the company's long-term direction, analysts noted the timing was unusual—coming shortly after his re-election and nearly a year before his mandatory retirement age of 72. Bulcke was originally due to retire in 2027. Investor frustration has been mounting in recent years. Several top-30 shareholders voiced concerns over Bulcke's support for Schneider during periods of underperformance, including a 42% drop in share price between 2022 and 2024. By contrast, rivals Unilever and Danone gained 15% and 19%, respectively, over the same period. Additional pressure came from regulatory controversies, including Nestlé's use of banned purification methods for bottled water in France and supply chain issues in the U.S. Investors said the unexpected departure of Schneider—who had continued investor roadshows shortly before his exit—only heightened concerns. Beyond governance, Nestlé's high debt level has drawn scrutiny. Net debt stood at 2.9 times adjusted EBITDA at the end of 2024, up from 2.5 times a year earlier, raising questions about the group's future dividend capacity. 'Shareholders only want one thing: returns. And if they're not there, then people are unhappy,' one investor commented. With Isla's appointment, investors hope for stronger execution and a refreshed leadership style. 'We need better execution at Nestlé,' said Jaeger. 'That's why it's good to have a breath of fresh air in the position of chairman.'
Yahoo
20-06-2025
- Business
- Yahoo
Nestlé chair Paul Bulcke to step down as Pablo Isla nominated successor
Nestlé chair Paul Bulcke is to step down in 2026 with vice chair Pablo Isla lined up to be promoted to the role. The Milo drinks maker said in a statement Bulcke will relinquish his board roles at the conclusion of the company's next annual general meeting on 16 April 2026 to allow for a "smooth transition and an orderly handover". Bulcke's decision comes after almost five decades with Nestlé, including nine years as chairman, 14 years on the executive board, and almost nine years as CEO, according to the statement. 'It has been a true privilege and a pleasure to be part of Nestlé's journey over so many years,' Bulcke said. 'It is the right moment for me to dedicate more time to my family and to embrace my many other interests.' Bulcke was replaced by Mark Schneider as CEO in early 2017. Laurent Freixe, who was Nestlé's executive vice president and CEO of the Latin America business, then took the helm from Schneider in September last year. "I am confident that with Pablo Isla, Laurent Freixe, as well as a strong executive team and board of directors, the company is in trusted hands and will continue its promising growth and value-creation journey," Bulcke said in the statement. The Switzerland-based food and drinks major said its board plans to put forward Isla for election as chairman at the 2026 AGM. He joined Nestlé's board of directors in 2018 and since 2024 has held the roles of vice chairman and lead independent director. In his former career, Isla was the CEO of clothing company Inditex, the parent of Zara, from 2005 to 2011, and added the chairman role to his CEO duties from 2011 to 2022. Isla said: 'I am enthusiastic about taking on this new role, as I fully identify with Nestlé's nutrition, health and wellness strategy and its 'creating shared value approach' to business.' Bulcke's career at Nestlé began in 1979 and he was appointed to the executive board in 2004, overseeing Zone Americas. He became a board member in 2008 and was CEO from 2008 to 2016, taking on the role of chairman in April 2017. Nestlé said that together with Freixe, the incoming leadership team is 'well equipped' to maintain the company's position in nutrition, health and wellness. "Nestlé chair Paul Bulcke to step down as Pablo Isla nominated successor " was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
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Business Standard
18-06-2025
- Business
- Business Standard
Nestle to name ex-Zara chief Pablo Isla as next chairman in April 2026
Swiss food giant Nestle said on Wednesday it would propose vice chairman Pablo Isla to be its next chairman as it announced that current chair and company veteran Paul Bulcke will step down in April 2026. Bulcke, a 70-year-old Belgian and Swiss national who has been chairman of the board since April 2017, joined Nestle in 1979 and served as the company's CEO from 2008 to 2016. Isla, a Spaniard who was CEO of Zara owner Inditex from 2005 to 2011 and chairman and CEO of Inditex from 2011 to 2022, joined Nestle's board of directors in 2018.
Yahoo
18-06-2025
- Business
- Yahoo
Nestle nominates ex-Zara boss Isla to replace Paul Bulcke as chair from next year
ZURICH (Reuters) -Swiss food giant Nestle said on Wednesday it would propose vice chairman Pablo Isla to be its next chairman as it announced that current chair and company veteran Paul Bulcke will step down in April 2026. Bulcke, a 70-year-old Belgian and Swiss national who has been chairman of the board since April 2017, joined Nestle in 1979 and served as the company's CEO from 2008 to 2016. Isla, a Spaniard who was CEO of Zara owner Inditex from 2005 to 2011 and chairman and CEO of Inditex from 2011 to 2022, joined Nestle's board of directors in 2018.
