Nestle CEO Mark Schneider Ousted in Sudden Shakeup

Nestle unexpectedly removed CEO Mark Schneider due to underperformance, according to sources. The board appointed Laurent Freixe as the new CEO. Chairman Paul Bulcke indicated the decision was a mutual assessment of the current environment. Analyst Bruno Monteyne noted the abruptness suggests it wasn't a planned transition.

Nestle CEO Mark Schneider was ousted in a sudden move by the world's biggest foodmaker due to the group's underperformance, according to sources informed about the matter. Following a board meeting, the Swiss company announced Schneider's departure late on Thursday and appointed veteran Laurent Freixe as the new CEO.

This marks the end of Schneider's nearly eight-year tenure as the first company outsider to lead Nestle in almost a century. Nestle declined to provide further details beyond a brief investor call on Friday, where Chairman Paul Bulcke said the board, in collaboration with Schneider, agreed on the change.

The abruptness of Schneider's removal indicates that it was not a planned transition. "It is clearly not his choice either, or he probably would have managed a smoother transition," said Bernstein analyst Bruno Monteyne.

(With inputs from agencies.)