The move reportedly came the day after a board meeting at which Schneider was asked to step down.

“[This] is another sign that this is not a planned transition,” Bruno Monteyne, managing director and senior analyst with research firm Bernstein, told Reuters. “It is clearly not his choice either, or he probably would have managed a smoother transition.”

During his eight-year tenure, Schneider pivoted the company toward high-growth products such as coffee, pet care, and nutritional health products, while exiting slower-growth sectors. He also committed to halving the company’s carbon emissions by 2030 and reaching net-zero emissions by 2050.

Weak sales growth has dogged the company, however. In its half-year results released in July, Nestlé noted a real internal growth rate of 2.2% for the second quarter and just 0.1% for the entire first half on underlying trading operating profit of 7.8 billion Swiss francs (approximately $9.2 billion). As a result, the company downshifted its organic sales growth outlook for the year from 4% to 3%.

The board decided that changes needed to be made and turned internally for new leadership.

Freixe had served as executive vice president and CEO Zone Latin America since 2022, when Nestlé adopted an updated geographic zone structure; prior to that, he was CEO of Zone Americas for eight years. He has been a member of the executive board since 2008. “I have known Laurent for a long time and highly regard him as a talented leader with strategic acumen, extensive in-market experience and expertise, as well as a deep understanding of markets and consumers,” says Paul Bulcke, Nestlé chair and Schneider’s immediate predecessor. “He has demonstrated his ability to deliver results in challenging market conditions. Laurent’s curiosity fuels his passion for innovation and positive change. Laurent is the perfect fit for Nestlé at this time.”

In mid-September, Citi CEO Jane Fraser announced a comprehensive reorganization of the banking giant. Part of the simplified operations model included putting its commercial banking, corporate banking and investment banking businesses under one Banking business line. Global Finance met Citi’s Raymond Gatcliffe, head of commercial bank, North America, to discuss the changes and their results.

Global Finance: Have there been any immediate synergies since CEO Jane Fraser’s September reorganization announcement, or is everything still a work in process?

Gatcliffe: Placing investment banking, commercial banking and corporate banking on an even playing field within banking, allows for more collaborative engagement. We have seen that since the announcements, and we’ve seen a lot of internal initiatives looking to see how we can increase the level of collaboration synergies and initiatives where we — with investment banking, can sharpen how we think about serving clients and how we bring the best of Citi to our clients.

Citi has a top global investment bank, and it is really about how we bring the best of that top global investment bank to our commercial banking clients more effectively. One way that we have done that is by the commercial bank adopting an industry coverage approach, which is the same way the investment bank and the corporate bank cover clients. So, by three banking organizations covering clients through an industry or sector lens, we see more collaboration, sharing of content and advice, and ultimately winning.

Gatcliffe: The initiative to change to sector coverage was initiated in 2022, but I think some of the initiatives that have come after September, in particular with the investment bank, have sharpened the focus and aligned the resources between the commercial bank and the investment bank.

GF: Was this coverage change a post-September or a pre-September change for commercial banking?

For example, we have co-located commercial, corporate and investment bankers on the same industry sector floors at our head office at 388 Greenwich St. in New York. That speaks to that level of partnership, collaboration, synchronicity and focus. We see that as one of the biggest opportunities to grow the commercial bank alongside our banking colleagues.

GF: With the new synergies, where does commercial banking stop and corporate banking begin?

Gatcliffe: We separate commercial and corporate banking by classifying clients with revenues or sales less than $3 billion predominantly served by the Commercial Bank and clients above $3 billion being served by the Corporate Bank. We look very carefully at how we cover them. However, many clients have more than $3 billion in sales per year. But if you want a general differentiation, it’s about $3 billion in sales or revenues.

GF: And with $3 billion in sales, that goes beyond SME status, wouldn’t it?

Gatcliffe: Yes. But Commercial Banking begins at $10 million in sales or revenues, up to $3 billion and sometimes over that. Overall, we are far more focused on where Citi Commercial Bank can bring the most value through our global network spanning more than 95 countries, our deep bench of expertise, and our wide variety of products and solutions across our businesses. We aim to offer the mid-market the same level of service and the same products that large caps get through their banks.

Companies that are more mid-sized and have cross-border needs can get the most out of banking with us. However, we cover clients across the sales or revenue spectrum with varying strategic goals. Clients with $10 million in sales, whom we call emerging growth companies, innovators or disruptors for startups, are also covered by Citi. Often, these companies are born with the potential to scale globally, so they benefit from our international presence and range of products. So, we cover the startup community as well in the commercial bank.

GF: Have any additional features been rolled out to the CitiDirect Commercial Banking platform?

Gatcliffe: We have been rolling out different functionalities, so basic visibility, payments, information, records and statements were the early functionality.

Now, we’re rolling into foreign exchange, moving into loans and accessing loans, and introducing different new functionalities.

We are constantly adding new functionality and also giving clients the ability to self-serve some of the things that they would call in our service centers to get done; they can get that information, they can get that access, they can get that question answered through the information that they would have on CitiDirect Commercial Banking. The platform will continue to evolve as it was created with user or client input and we continue to seek feedback on usability as well as where improvements are necessary.

GF: How has artificial intelligence affected your organization’s performance in the past year?

Lori Schwartz: We are looking at ways to harness the power of such technology to simplify and make our internal processes more efficient.

We have large amounts of extraordinarily rich data that, together with AI, can fuel better insights and help us improve how we manage risk and serve our customers. For example, our data solutions help harness a client’s data into actionable insights while helping them confidently navigate rapidly changing economic environments. With Forecasting through Treasurer Insights, clients can strengthen cashflow accuracy, increase cash availability return, and find previously invisible patterns via cutting-edge technology, including AI and machine learning.

Overall, there is enormous potential with technology and how creatively we deploy efforts in a targeted manner.

Has the investment ratio between keeping the lights on and innovation changed? Why?

Nothing has drastically changed in terms of investment ratio. We have always been committed to the cause of technology, and we continue to be a front-runner at various levels, leading by example in the industry.

We also evolve alongside our clients, and we are fortunate to continue to do the right things on their behalf, with the sponsorship and support to push forward on our ambitious tech investment agenda.

GF: What is the most misunderstood thing about having an innovation within the treasury?

Schwartz: A big misunderstanding is that innovation is only about technology. Innovation is more than improving your technology stack or rebuilding your platforms, such as treasury management systems, enterprise resource planning, or bank connectivity. It is also about transforming your process and approach to how business is led within an organization—it’s about creating efficiencies, changing mindsets and re-engineering to drive maximum gains.

Collaboration is critical to managing inefficient processes through innovation. Treasurers who take a long-term approach to technological development and work with technology and innovation teams can greatly impact business efficiency. With a seat at the table, treasurers can apply their financial expertise to advise on technology and cash flow in a way that creates operational efficiencies and saves costs.

GF: Which are the most common innovation-related pitfalls that organizations should avoid?

Schwartz: Some pitfalls that can hinder innovation include not having strategic alignment with key stakeholders, unclear or unvalidated benefits to the customer, lack of prioritization, and lack of long-term commitment to the program and resources needed.

GF: How have you changed your approach to innovation since starting your role?

In this role, I learned that innovation is not just about the next cutting-edge idea or opportunity. It is just as much about the path or journey to innovation, changing how we think about solving problems for our clients. For example, getting folks to see problems from the client or user’s point of view will fundamentally change how we solve problems in existing capabilities.  The outcome will almost always be an innovative solution. Also, sitting down and talking with our clients about their biggest challenges and trying to understand an experience from their point of view is critical to the innovative process.

GF: Does your team “move fast and break things?” If not, how does it approach innovation?

Schwartz: Moving fast is relative but involves alignment and buy-in across critical stakeholders and teams. The most important thing is to relentlessly and continuously prioritize. Competing priorities will challenge most big projects. Innovation requires extreme prioritization and commitment. Instead of “breaking things,” we focus on driving modernization across the ecosystem.

GF: What was the most important lesson you learned during your tenure?

Schwartz: Some important lessons I’ve learned include:

You can’t throw design on top of development; it must be deeply embedded in the organization’s fabric.

Our Digital Channels strategy in my Digital & Design portfolio must be omnichannel, which drives the data and architecture strategy and approach. This gives our clients the option of digitally engaging with our solutions. Whether sitting at a terminal, on the go with mobile or relying on machine-to-machine transacting, we can deliver what clients are looking for.

GF: How have the skill sets needed within the corporate treasury changed since you started?

Schwartz: The corporate treasury function has evolved from the back-office function to leading transformation from within their organizations. They are at the forefront of driving change, whether it is strategic planning for long-term business objectives, expansion plans or even execution of the innovation agenda.

Treasurers are savvy and leverage technology to solve day-to-day needs such as bank-agnostic reporting, virtual accounts and real-time liquidity. This frees their time and resources to focus on strategic projects and initiatives.

Not only are treasurers becoming technology experts within their functions, but they are also key agents of change and collaboration. Given the digital transformation that treasury is experiencing, collaborating across departments to inform effective outcomes is on the rise. Treasurers can create value by speaking the language of their peers across the business and leading with influence.

GF: How will your position change in the next five to ten years?

Schwartz: With an increased focus on innovation in the industry, we will continue to expand our capabilities and solutions to empower our clients.

Continued investments in areas such as the technology stack and expertise mean we can consistently build on our offering over the years.

As a team, we’re committed to continually raising the bar regarding quality. We want to ensure we meet and guide our clients at every step of the way through market movements and their evolution journeys.

Verdeschi has spent the last seven years as Citi’s treasurer, in which capacity he managed a $2 trillion balance sheet, centralized treasury activities and revamped governance. When he succeeds Crawford, his remits will include heading treasury and control functions, financial planning and analysis, investor relations, corporate development and strategy, vendor management and corporate real estate.

“Peter’s leadership has been central to Schwab’s evolution as one of the nation’s largest investment services firms,” Schwab co-chairman and CEO Walt Bettinger said in making the announcement. “We are also fortunate to have a seasoned executive with Mike Verdeschi’s experience join us to lead our disciplined approach to financial and balance sheet management as we lay the groundwork for Schwab’s continued growth and success.”

The announcement comes as Schwab completes the final stages of its $26 billion acquisition of online broker TD Ameritrade. In May, it moved the last roughly 1.8 million Ameritrade accounts to Schwab, representing some $350 billion in assets.

Verdeschi finds himself in an apparently stable environment at his new employer. Despite reporting a -7.35 % growth rate and a 0.26% return on assets at the end of the first quarter, Schwab once again beat Wall Street’s earnings consensus, this time by a penny. The firm also achieved a 3.85% return on equity and a solid net margin of 26.39%, each above the industry average. “The final part of the Ameritrade cost synergies remain on track for 2H24, setting up 2025 for another period of no- to low-expense growth,” Kenneth Worthington, stock analyst at J.P. Morgan, predicted in a note.