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Nestlé’s board has proposed former Inditex chief Pablo Isla as its new chair, as the world’s biggest food company announced Paul Bulcke would stand down from the role next year.
The group behind Kit Kat and Nescafé said in a statement on Wednesday that Bulcke would not stand for re-election at Nestlé’s annual general meeting next year, bringing down the curtain on a career with the company that stretches back to 1979.
Bulcke worked for Nestlé in markets from Peru to Portugal, Germany and the US, before being promoted to chief executive in 2008. The Belgian became chair of the Swiss company in 2017.
The appointment of Isla, currently Nestlé’s vice-chair, marks a break from tradition at the company, where typically the chief executive moves into the role of board chair.
He was chief executive of Spanish fast fashion giant Inditex from 2005 to 2011, working closely alongside billionaire founder Amancio Ortega.
Isla took on the chairmanship while remaining CEO for 11 more years after Ortega stepped back. He was credited with leading the rapid international and online expansion that turned Inditex, the owner of Zara, into the world’s largest fashion retailer by sales. He joined Nestlé’s board in 2018.
Sales at Inditex — which also includes Massimo Dutti, Pull & Bear and Bershka — multiplied from less than €6bn in 2004 to nearly €28bn in 2022, during Isla’s 17 years at the top,
The transition will complete a leadership overhaul at the top of Nestlé, following the ousting of former chief executive Mark Schneider last August after a period of slow growth and operational mishaps.
Schneider, a rare outsider CEO appointment for the Swiss group, was replaced by company veteran Laurent Freixe weeks later. Freixe has set out to boost growth and win back the trust of investors by focusing on the company’s core categories.
“I thank Paul for the trust he gave me over many years, and I look forward to working with Pablo, the full board, and the entire Nestlé team as well as all our stakeholders, as we pursue our strategy,” Freixe said.
Isla said he “fully” identified with Nestlé’s nutrition, health and wellness strategy.
“It has been a true privilege and a pleasure to be part of Nestlé’s journey over so many years, providing me with enriching experiences and responsibilities,” Bulcke said.
Nestlé said on Wednesday that its board of directors had proposed Spanish executive Isla for election at the AGM next year, “allowing time for a smooth transition and orderly handover”.
