Nestlé investors seek ‘fresh start’ as new chairman’s reign begins

Nestlé investors are hoping the Swiss food group can draw a line under a period of volatility and sliding shares after the company accelerated the departure of its chairman, hot on the heels of a scandal that toppled its chief executive officer (CEO).

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After the early exit of Chairman Paul Bulcke, 71, former Inditex CEO Pablo Isla will take the reins on Oct. 1, half a year ahead of schedule, challenged to revive the fortunes of the maker of KitKat chocolate and Nescafe coffee by revving up sales and focusing on fewer brands.

Mr. Isla, 61, is the first outsider to be named chairman at Nestlé in 25 years, and could help new CEO Philipp Navratil, 49, as he looks to mollify investors who had grown frustrated with tepid sales and a more than 40% share price drop since 2022.

“Isla must steer Nestlé back into calm waters. Furthermore, he must work with the board to develop a new strategy to regain the confidence of capital markets,” said Ingo Speich, head of sustainability and corporate governance at German asset manager Deka Investment, which has a stake of around 0.5% in Nestlé.

Mr. Speich said the company had been forced to speed things up given rising investor pressure, but hoped Mr. Isla would bring a fresh perspective.