Nestle says chairman Paul Bulcke to step down

Nestle on Tuesday announced that its longtime chairman Paul Bulcke had decided to step down, just weeks after the Swiss food giant suddenly fired its chief executive over an office relationship.

Nestle said in a statement that vice-chairman "Pablo Isla will become chairman effective October 1, following Paul Bulcke's decision to step down from the board earlier than planned."

The announcement came just over two weeks after the multinational behind Nespresso coffee capsules and KitKat chocolate bars said it had dismissed Laurent Freixe as chief executive with immediate effect over an "undisclosed romantic relationship with a direct subordinate". 

In a swift move, Nespresso CEO Philipp Navratil was appointed to take over by his fellow board members.

According to media report, Nestle investors had since been pushing for Bulcke -- a Belgian national who served as Nestle CEO for nearly a decade before becoming chairman in 2017, to step down.

The Financial Times reported that investors blamed him for a chaotic period at the company that culminated with Freixe's ouster.

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Bulcke, who has been scheduled to remain in his position until next April, said in Tuesday's statement that he had "full trust in Nestle's new leadership and firmly believe this great company is well positioned for the future". 

"This is the right moment for me to step aside and accelerate the planned transition, allowing Pablo and Philipp to advance Nestle's strategy and guide the company with a fresh perspective," he said. 

Isla meanwhile hailed Bulcke "for his leadership and unwavering dedication to Nestle".

"Paul's wisdom and commitment have shaped the company and laid the groundwork for our next chapter," he said, adding that Bulcke had been named Honorary Chairman of the company.

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