Nestlé Shares Drop 2.5% Following CEO’s Unexpected Resignation

• Nestlé shares fell by over 2.5% in early trading after CEO Mark Schneider’s surprise resignation.
• Laurent Freixe, previously head of Nestlé’s Latin American division, has been appointed as the new CEO.
• Freixe aims to focus on organic growth, market share expansion, and improving the company’s performance.

Vevey, August 23 (FFN) – Shares of Nestlé, the world’s largest food company, came under pressure after the unexpected resignation of CEO Mark Schneider. In early Friday trading on the Swiss stock exchange, Nestlé shares dropped by over 2.5%, according to a report by DPA.

Nestlé’s board of directors, after several disappointing quarters, announced Schneider’s resignation and appointed Frenchman Laurent Freixe as the new CEO. Freixe, 62, who has been with Nestlé since 1986 and most recently led the company’s Latin American division, stated, “I will focus on organic growth.” As the new head of the company, Freixe aims to increase market share and enhance overall performance.

In the morning, Nestlé shares fell by more than 2.5%. By late morning CET, the shares were trading down 1.86%, at 87.78 CHF (92.50 EUR). Last September, Nestlé shares were valued at over 105 CHF.

Chairman Paul Bulcke, during a conference call with analysts, did not confirm whether the company’s weakened share price was the reason for the leadership change. Freixe announced plans to invest in research and development, as well as productivity, and to accelerate digital transformation.

Mark Schneider, who joined Nestlé in 2017 from the pharmaceutical and healthcare company Fresenius, made significant contributions to the company’s sustainability efforts, according to Bulcke, who announced Schneider’s resignation.

(1 EUR = 0.949 CHF)