Nestle CEO Mark Schneider has been ousted from his position in a decision made by the company.
Who Is Mark Schneider?
Mark Schneider had been the CEO of Nestle for a period of 8 years at the time of this decision. He has driven the company through highs and through lows, and has brought about significant transformations in its working and values.
Why Was He Ousted?
This decision by the world’s largest food maker firm might be owing to sudden decline in growth and underperformance since some time now. Over the last year itself, the value of Nestle’s shares have declined by almost 30% which is in stark contrast when compared to the initial years when Schneider took over the CEO position.
Who Will Take Charge Now?
His position will be taken up by Laurent Freixe, who will formally ascend this position from the 1st of September. This sudden change might give a new direction to the company and enhance its upcoming financial performance too. The new CEO, who earlier headed the Latin America region and has worked with the company for 40 years, is expected to bring fresh ideas and long-term stability to the company.
What Is The New Approach?
However, the appointment of the new CEO might bring certain changes in the functioning of the company. Whether he will choose to focus on the traditional Nestle values and the traditional trade areas is yet to be seen. There are talks of expansion into new markets like vitamins, minerals, coffee, pet-care and others. His experience and knowledge might have an extremely positive impact on the company and might drive it in the right direction.
But the fact of the matter remains that this was far from a smooth transition and hence establishing stability might be a challenge. Creating a space in the market and handling competitors, would be a challenge for Mr. Freixe.
