Nestle SA has lowered its medium-term profitability target, now aiming for a trading operating margin of 17%, down from the previous goal of 17.5% to 18.5%. The company also announced plans to spin off its water business into a standalone entity as new CEO Laurent Freixe addresses the slowest growth in decades. Sales are expected to rise by 4% or more in a normal operating environment, contrasting with the mid-single-digit growth forecasted for 2025.
In 2023, CEO salaries in Switzerland rose by an average of 5%, with UBS CEO Sergio Ermotti leading at CHF 14.5 million for just nine months in office. Following him were Novartis CEO Vas Narasimhan at CHF 13.3 million and former Nestlé CEO Mark Schneider at CHF 11.2 million. Despite public discontent over high executive pay, total remuneration for SMI CEOs has increased by a quarter over the past three years.
Nestlé's new CEO, Laurent Freixe, has lowered the company's growth expectations for 2024 to around 2.0% due to weakened consumer demand and inventory reductions by retailers. The company reported total sales of 67.1 billion Swiss francs in the first nine months, with a restructuring of the Executive Board underway to adapt to the challenging market environment. Key product categories like coffee and pet food showed growth, while dairy and culinary segments faced declines.
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