Nestlé’s recent leadership turbulence is more than a corporate headline. It is a warning for every board and C-suite team. Three CEOs in two years, two forced out under difficult circumstances, and a longtime chair stepping down early amid shareholder pressure, all under global media scrutiny. The result was a crisis of confidence that hit not only the board’s credibility but also the company’s performance.

The lesson is clear: once confidence falters, every subsequent decision is judged more harshly. And the blowback does not stop at the board table. It reverberates through management, investors, employees, and markets. Families lose income, reputations take a hit, and shareholder value drains away. Nestlé’s saga underscores a truth too often forgotten: good governance is everybody’s business.

Directors and executives everywhere should be watching Nestlé closely. Governance failures do not just erode reputation. They drain focus, destabilize leadership, and undermine performance. Nestlé’s experience is a visible case study of how accountability plays out in real time and why stability and renewal are both non-negotiable.

Nestlé’s appointment of Pablo Isla as chair is seen as a steadying move. Isla, a respected lead independent director and vice chairman since 2018, brings deep company knowledge and proven turnaround ability from leading Inditex, the parent of Zara. His presence aims to guide Nestlé through uncertainty with steady hands while reinforcing the need for ongoing board refreshment.

A. What Happened

• In 2017, Nestlé appointed Ulf Mark Schneider as its first external CEO in nearly a century, aiming to drive transformation. In 2024, Schneider departed amid growing concerns.

• The board reacted by choosing Laurent Freixe, a 40-year Nestlé veteran, but he was dismissed less than a year later for breaching the company’s code of conduct, triggering further scrutiny.

• Chair Paul Bulcke, a 46-year company veteran who was appointed Chair in 2017, faced rising shareholder dissent and stepped down early in 2025.

• Pablo Isla, lead independent director and vice chairman since 2018, took over as chair in October 2025, providing experienced, calm leadership during a volatile period.

B. A Board's Eye View on the Nestlé Saga

Nestlé’s turbulence shows how governance is judged not in isolated moments, but in hindsight—where decisions form a pattern. Once something goes wrong, every subsequent decision is judged more critically, and the board must work harder to restore confidence.

1. Credibility is Judged by The Moment and Confirmed by The Track Record

Three Nestlé CEOs in less than two years unsettled investors and employees. Each appointment had its rationale, but in hindsight the succession looked like instability. A single moment can put credibility under pressure, but the sequence of decisions is what confirms whether confidence is rebuilt or eroded.

Lesson: After one high-stakes misstep, every new decision carries more weight. A single moment can damage credibility, but it is the track record of decisions that determines whether trust is restored or lost.

2. Accountability Is Immediate, Consequences May Linger

When concerns about Freixe surfaced, Early board responses were viewed as slow and insufficiently rigorous, which allowed doubts about oversight to grow. By the time action was decisive, confidence in board oversight was already dented.

Lesson: Boards cannot afford half-measures on accountability. Stakeholders expect clear, timely enforcement at every level. Delays in standards enforcement weaken trust.

3. Departures from Best Practice Can Come Back to Bite

Bulcke’s move from CEO straight to chair was allowed by company rules but departed from global best practice. Years later, shareholder pressure forced his early exit, underlining how yesterday’s judgements can become tomorrow’s trust issues.

Lesson: Departing from best practice heightens the risk of your judgment being found wanting. What seems reasonable today may be questioned as a misstep tomorrow.

4. A Single Crisis Is Rarely Ever Judged In Isolation

Firing Freixe for a code breach was undoubtedly the right thing to do. But in the context of prior CEO turnover and board dissent, even decisive actions were read as part of a pattern, not a reset.

Lesson: Boards must be mindful that decisions are rarely ever judged in isolation. Rebuilding trust demands not just the right call, but consistency over time.

5. Independence Anchors the Board When Stakeholder Trust Falters

Isla’s appointment as chair, as a respected independent director, was welcomed for restoring stability and trust ...where more internal continuity could not.

Lesson: Independence on the board is essential, especially in turbulence. Without it, boards risk being seen as self-protective rather than principled.

C. In Closing ...

Nestlé’s story is not about one governance breach, but how confidence unravels when board decisions, each defensible in context, form a pattern stakeholders distrust.

• Don’t measure decisions only by today’s rationale. Consider how they’ll look in hindsight.

• Don’t assume one strong action resets confidence. Credibility is rebuilt over a sequence, not a single call.

• Understand governance codes before you depart from them. Every deviation is a choice for which you are accountable, and one that may carry consequences if judged poorly in hindsight.

• Ensure strong independent voices can steady the board when turbulence hits.

• Remember that stability and renewal must go hand in hand. Refreshing the board at the right intervals strengthens accountability and signals to stakeholders that oversight is active, not complacent.

Boards are not judged by avoiding turbulence ...that’s inevitable. They are judged by whether their decisions show consistency, independence, and foresight in the eyes of those whose trust they rely on.

And that is why directors and executives everywhere should be watching Nestlé: not to point fingers, but to recognize how accountability plays out in real time and to ensure their own decisions stand stronger when hindsight arrives.

Bold Leadership. Ethical Governance. Meaningful Impact. That's the charge. Carry it Forward!

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