Mark Schneider, Nestle’s recently ousted CEO, guided the company through the COVID-19 pandemic, expanded margins despite supply chain challenges, and led a historic reorganization. So, when did he lose the board’s confidence?
Nestle declined to comment on Schneider’s departure, but sources told Reuters that his dismissal was due to concerns about weak sales growth and slow product development. Nestle’s stock has fallen about 30% since its pandemic peak, and analysts have criticized the company for its high prices and reduced innovation.
Despite these challenges, Schneider successfully grew Nestle’s operating margins from 16.5% to 17.3%, outperforming competitors like PepsiCo and Unilever. However, his cautious approach to marketing and underinvestment in new products has faced criticism.
His successor, Laurent Freixe, who has worked at Nestle for 40 years, aims to focus on organic growth instead of acquisitions.