Nestle share price drops: Chairman Paul Bulcke to step down earlier than expected; food giant’s shares fall 0.5%

Nestle shares dipped on Wednesday after the food and beverage giant announced the “earlier than planned” exit of its chairman, Paul Bulcke, marking another shake-up at the top of the Swiss multinational.The news sent Nestle’s stock down 0.51% to 71.52 Swiss francs ($90.80) in early trading, weighing on the Swiss stock exchange’s SMI index, which slipped 0.31%.The group, whose brands include Nespresso coffee and KitKat chocolate, announced on Tuesday night that Bulcke would step down on October 1, months ahead of his planned departure in April 2026. Vice-chairman Pablo Isla will be taking over the position.Bulcke’s sudden departure comes just two weeks after chief executive Laurent Freixe was dismissed over an “undisclosed romantic relationship with a direct subordinate”, a scandal that forced his immediate removal after only a year in the role. He has since been replaced by Philipp Navratil, the former head of Nespresso, AFP reported.For many investors, Bulcke’s departure had already been overdue. The Belgian executive spent nearly ten years as chief executive before becoming chairman in 2017, but shareholders have increasingly held him responsible for the instability that culminated in Freixe’s removal. The Financial Times reported that investors directly linked him to the company’s chaotic recent period.“Pressure from investors had mounted to a peak in recent weeks following the turmoil involving former CEO Laurent Freixe,” Vontobel analyst Jean-Philippe Bertschy wrote, as cited by AFP. “Nestle needs to return to calmer waters and regain its former stature.”Patrik Schwendimann, analyst at Zurich Cantonal Bank, said the timing was hardly surprising. “The early resignation comes as little surprise after the events of the past few weeks,” he noted, adding that Bulcke’s departure would allow “Nestle to focus on the future, hopefully with less background noise”.