Food and beverage giant Nestle has announced the immediate dismissal of its chief executive, Laurent Freixe, after an internal investigation found he was involved in an undisclosed romantic relationship with a direct subordinate.
The Swiss company, which owns brands including KitKat and Nescafe, stated that the relationship was in breach of its code of business conduct. The decision was announced on Monday, less than a year after Mr. Freixe took on the top job.
In a press release, Nestle’s chairman, Paul Bulcke, called the dismissal a “necessary decision,” emphasising the company’s commitment to its values and governance. “Nestle’s values and governance are strong foundations of our company. I thank Laurent for his years of service at Nestle,” Mr. Bulcke said.
Mr. Freixe, a Nestle veteran who had been with the company for nearly four decades, was appointed CEO in September 2024, following the sudden departure of his predecessor, Mark Schneider. His short tenure at the helm has been brought to a swift end by the findings of the internal investigation. The inquiry, overseen by the chairman and the lead independent director with the support of external legal counsel, was initiated after allegations were raised through the company’s internal reporting system.
While the identity of the subordinate has not been disclosed by the company, it is understood the individual was not a member of the executive board. The investigation found that the undisclosed nature of the relationship created a conflict of interest, violating company policy.
The move by Nestle echoes similar cases in recent years where top executives have been fired for failing to disclose relationships with employees, including the former CEOs of McDonald’s and BP. These instances highlight the increasing scrutiny on corporate leaders to adhere to ethical standards and transparent governance.
In the same announcement, Nestle named Philipp Navratil as Mr. Freixe’s successor, with the appointment effective immediately. Mr. Navratil, who has been with Nestle since 2001, most recently served as the CEO of Nespresso. He has held various leadership positions within the company, including roles in Central America and Mexico, and joined the executive board in January of this year.
In a statement, Mr. Navratil said, “I am honoured by the trust the Board has placed in me… I fully embrace the company’s strategic direction, as well as the action plan in place to drive Nestle’s performance.”
Nestle’s shares opened down slightly on Tuesday following the news, but the company’s leadership stressed that the strategic direction of the business would not change. The swift action by the board is seen by some as an attempt to reassure investors and the public of its commitment to strong corporate governance.
