Mark Schneider, the recently ousted CEO of Nestlé, adeptly guided the world's largest food company through the challenges of the COVID-19 pandemic, managed to increase margins despite a subsequent supply chain crisis, and executed a historic reorganization. So, when did the board's confidence in him wane?

 

Nestlé chose not to elaborate on the circumstances surrounding his departure when it was announced, and Schneider did not respond to requests for comment. However, three sources informed Reuters that the decision to terminate his position had been made.

 

One source indicated that the board grew increasingly concerned about sluggish sales growth and expressed worries regarding a slowdown in product development, noting that new and revamped products were taking longer to create and launch.

 

"Two years ago, Mark Schneider could do no wrong; now he seems to be getting everything wrong," remarked Bernstein analyst Bruno Monteyne, highlighting a significant drop in Nestlé's stock, which has plummeted around 30% since its pandemic peak in early 2022.

 

Yet, Monteyne questioned, "Is that sufficient reason to part ways with a CEO who was celebrated just two years ago as the best in the sector?" Schneider, 58, made history in 2017 as the first outsider to lead the iconic maker of KitKat bars and Nescafé coffee in nearly a century.

 

Under his leadership, the company's stock reached its zenith, hitting a record 129.5 Swiss francs ($152.73) at the beginning of 2022. That same year, he spearheaded a significant overhaul of the organization, restructuring the executive board to align with a new geographic framework.

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