New Delhi, Sept. 17 -- Switzerland-based food and beverage giant Nestle on Tuesday announced that its chairman, Paul Bulcke, has decided to step down and will be replaced by former Inditex CEO Pablo Isla from October 1 onwards.

"The Board of Directors of Nestle S.A. has announced that Pablo Isla will become Chairman effective October 1, following Paul Bulcke's decision to step down from the Board earlier than planned," the company said in a release.

His resignation comes two weeks after Laurent Freixe was dismissed as CEO due to an "undisclosed romantic relationship with a direct subordinate."

Analysts and shareholders questioned Bulcke's role following the disclosure of Freixe's alleged relationship with a subordinate, resulting in hi...