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Nestlé CEO Mark Schneider to step down

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Nestlé CEO Mark Schneider to step down

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Nestlé’s chief executive Mark Schneider has stepped down after eight years as head of the world’s largest food company, following a period of underperformance that has hit the company’s share price.

Schneider “has decided to relinquish his roles as CEO and member of the board of directors”, the company said on Thursday.

He will be replaced by Laurent Freixe, Nestlé’s executive vice-president and CEO in Latin America, who will begin in the role in September.

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“Laurent is the perfect fit for Nestlé at this time. Under his leadership, Nestlé will further strengthen its position as a dependable, reliable company through consistent and sustainable value creation,” said chair Paul Bulcke.

Nestlé said that Schneider, who was previously chief executive of German healthcare company Fresenius, had helped shape the company’s portfolio by focusing on high-growth categories such as pet food, coffee and nutritional health.

For much of his tenure, the company, whose brands include Nescafé and KitKat, had outperformed many of its rivals in the consumer goods sector like Unilever. However, a string of mishaps and earnings misses disappointed investors and weighed on the share price, which has fallen 14 per cent over the past 12 months.

At the end of last year the company warned of a hit to sales after the integration of an IT system was botched, causing delays to its supply chains for vitamins and supplements. Then, earlier this year, Nestlé was investigated by French regulators for using illegal purification techniques on bottled mineral water.

The share price fell 6 per cent following the recent half-year earnings, after the group cut its sales outlook for the year, and after analysts concluded that its midterm growth forecast had been too ambitious.

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Laurent Freixe has been Nestlé’s executive vice-president and CEO in Latin America © REUTERS

“After an increasingly difficult year, it’s not a total surprise to see a CEO change at Nestlé,” said Jefferies analyst David Hayes. When Mark Schneider was appointed, Freixe had also been a contender for the top job, he added.

“At the time, an outsider in Schneider was preferred — to shake things up. Freixe’s appointment today to us feels like a sign that the board wants to rebuild Nestlé culture,” he said.

Bernstein analyst Bruno Monteyne said that, if Schneider had been asked to step down by the board, this would have been a “harsh judgment”.

“Changing the chief executive isn’t going to change the categories they are in and the quality of the brands,” Monteyne said, adding that Schneider had a good record at the company.

Freixe, a Frenchman who joined the group almost four decades ago, has previously run its European and Americas businesses. “There will always be challenges, but we have unparalleled strengths . . . “ Freixe said. “We can strategically position Nestlé to lead and win everywhere we operate.”

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Christopher Rossbach, portfolio manager at J Stern, a long-term holder of Nestlé, said he welcomed the appointment of Freixe, and believed he could get the business past its recent challenges. 

“Nestlé’s shares have sold off this year alongside other consumer products companies and are trading at multiyear valuation lows, both because of higher inflation and interest rates and the issues it has faced in its business,” he said. But that picture would improve as wages caught up with inflation, he added. 

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Video: Fires Continue to Burn One Week Later in California

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Video: Fires Continue to Burn One Week Later in California

new video loaded: Fires Continue to Burn One Week Later in California

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Fires Continue to Burn One Week Later in California

The Palisades and Eaton fires, ravaging Los Angeles for more than a week, remain mostly uncontained by firefighters.

“We just had — just had Christmas morning right over here, right in front of that chimney. And this is what’s left.” “I urge, and everybody here urges, you to remain alert as danger has not yet passed. Please follow all evacuation warnings and orders without delay and prioritize your safety.”

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South Korea’s President Yoon Suk Yeol arrested after stand-off with police

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South Korea’s President Yoon Suk Yeol arrested after stand-off with police

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South Korea’s suspended President Yoon Suk Yeol was arrested on Wednesday morning following a predawn raid by police and investigators on his fortified hilltop compound.

Yoon’s detention followed a six-hour stand-off between law enforcement officials and members of the president’s security detail. It is the first time in South Korea’s history that a sitting president has been arrested.

The development marks the latest twist in a political crisis that was triggered by his failed attempt to impose martial law last month, and which has shaken confidence in the democratic integrity of Asia’s fourth-largest economy.

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Yoon was suspended from his duties after he was impeached by parliament in December following his attempt to impose martial law. The country is currently being led by finance minister Choi Sang-mok as acting president.

The operation on Wednesday, which began shortly after 4am, was the second attempt this month by the CIO to detain Yoon for questioning on insurrection and abuse of office charges.

An initial effort earlier this month was foiled by Yoon’s protection officers following a tense hours-long stand-off at the presidential residence. Yoon had previously refused to comply with investigators and had challenged their authority to bring him in for questioning.

“The rule of law has completely collapsed in this country,” Yoon said in a video statement recorded before his transfer to the headquarters of the country’s Corruption Investigation Office for questioning. “I’ve decided to appear for CIO questioning in order to prevent any bloodshed.”

According to South Korea’s state-owned news agency Yonhap, police and officials from the CIO arrived at the compound early on Wednesday and presented a warrant for Yoon’s arrest but were again initially prevented from entering by the Presidential Security Service.

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Yonhap also reported that about 30 lawmakers from Yoon’s conservative People Power party were at the compound and attempting to prevent officials from entering it.

But with hundreds of police gathered outside, some of them equipped with ladders and wire cutters to overcome barricades erected by Yoon’s protection officers, CIO officials were eventually allowed to enter the residence.

Yoon’s lawyers initially attempted to broker a deal whereby he would surrender voluntarily for questioning. But this was not accepted by CIO officials, and he was eventually arrested just after 10.30am and transferred to the investigative agency’s headquarters.

“Yoon’s arrest is the first step towards restoring our constitutional order,” said Park Chan-dae, floor leader of the leftwing opposition Democratic Party of Korea. “It underlines that justice is still alive.”

While Yoon’s powers have been transferred to Choi as acting president, he remains South Korea’s head of state while the country’s Constitutional Court deliberates on whether to approve his impeachment or reinstate him in office.

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The court held its first formal hearing into Yoon’s impeachment on Tuesday, but the session was adjourned after four minutes because the suspended president declined to attend, citing concerns for his personal safety.

The efforts by the CIO and police to detain Yoon for questioning relates to a separate, criminal process connected to his failed imposition of martial law. Yoon’s lawyers insist the CIO has no standing to pursue criminal insurrection charges against him.

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SEC sues Elon Musk, says he didn't disclose Twitter ownership on time before purchase

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SEC sues Elon Musk, says he didn't disclose Twitter ownership on time before purchase

Elon Musk speaks as part of a campaign town hall in support of Donald Trump in Folsom, Pa., on Oct. 17, 2024.

Matt Rourke/AP


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The U.S. Securities and Exchange Commission has sued billionaire Elon Musk, saying he failed to disclose his ownership of Twitter stock in a timely manner in early 2022, before buying the social media site.

As a result, the SEC alleges, Musk was able to underpay “by at least $150 million” for shares he bought after he should have disclosed his ownership of more than 5% of Twitter’s shares. Musk bought Twitter in October 2022 and later renamed it X.

Musk started amassing Twitter shares in early 2022, and by March of that year, he owned more than 5%. At this point, the complaint says, he was required by law to disclose his ownership, but he failed to do so until April 4, 11 days after the report was due.

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Representatives for X and Musk did not immediately return a message for comment.

After Musk signed a deal to acquire Twitter in April 2022, he tried to back out of it, leading the company to sue him to force him to go through with the acquisition.

The has SEC said that starting in April 2022, it authorized an investigation into whether any securities laws were broken in connection with Musk’s purchases of Twitter stock and his statements and SEC filings related to the company.

Before it filed the lawsuit, the SEC went to court in an attempt to compel Musk to testify as part of an investigation into his purchase of Twitter.

The SEC’s current chair, Gary Gensler, plans to step down from his post on Jan. 20 and it is not clear if the new administration will continue the lawsuit.

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