Nestlé’s Shareholder Surprise Sours Stock as CEO Gets the Boot
Chocolate with a side of corporate shakeup? After an eight-year tenure at the helm, Nestlé just ousted CEO Mark Schneider — replacing him with company veteran Laurent Freixe. Despite ongoing struggles with weakened consumer spending, the surprise move has sparked concerns among investors and analysts now questioning growth and profitability.
- After repeatedly missing quarterly sales expectations, has dropped 9% in 2024, underperforming Danone’s 1.3% and Unilever’s and 31% year-to-date gains.
- Schneider’s strategy faced investor backlash, as shareholders criticized the outgoing CEO for “chasing growth through expensive acquisitions.”
Synthetic to organic growth: Despite its status as a European “Magnificent 7” stock, Nestlé has significantly underperformed its six peers, booking the index’s worst one-year and five-year returns. Incoming CEO Freixe, a nearly 40-year Nestlé veteran, hopes to turn that around by pulling away from M&A and prioritizing “organic growth,” with plans to refocus on “driving the current portfolio.” That might mark an end to experimental ventures in health and nutrition, divestments of underperforming businesses, and job cuts. As investors still digest an acquisition binge, following this recipe will either cook up success or leave a bitter taste.
