Swiss food giant Nestlé has dismissed its Chief Executive Officer, Laurent Freixe, with immediate effect after an internal probe revealed he had engaged in an “undisclosed romantic relationship with a direct subordinate,” in violation of company policy.
The board announced the decision on Monday, September 1, stressing that the dismissal was necessary to uphold corporate governance standards and preserve Nestlé’s reputation.
“The departure of Laurent Freixe follows an investigation into an undisclosed romantic relationship with a direct subordinate which breached Nestlé’s code of business conduct,” the company said in a statement.
Board Chairman Paul Bulcke, alongside Lead Independent Director Pablo Isla, oversaw the probe with the support of external counsel.
Bulcke acknowledged Freixe’s contributions but underscored the importance of integrity within the multinational.
“This was a necessary decision. Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service,” he said.
In a rapid succession plan, the board named Philipp Navratil, former head of Nestlé’s Nespresso division, as the new Group CEO.
Navratil, a company veteran who joined in 2001, has held several leadership roles across Central America, Mexico, and in the global coffee and beverages division.
Most recently, he spearheaded innovation and strategy for Nescafé and Starbucks brands before becoming Nespresso CEO in 2024.
“The board is confident that he will drive our growth plans forward and accelerate efficiency efforts,” Bulcke noted, insisting that the company’s strategic direction remains unchanged.
Navratil pledged continuity and focus, stating: “I fully embrace the company’s strategic direction, as well as the action plan in place to drive Nestlé’s performance.
I will pursue the value creation plan with intensity.”
Freixe’s exit comes less than a year after he assumed the top role in September 2024.
His appointment had been viewed as a surprise at the time, with the board entrusting him to revitalize consumer spending on Nestlé’s broad range of products, from KitKat and Maggi cubes to Purina pet food and Gerber baby meals.
A company veteran since 1986, Freixe previously ran Nestlé’s European operations through the financial crises of 2008 and later led its Latin American division.
His short-lived leadership was marred by declining performance.
In July, Nestlé reported a 10.3% drop in first-half profits, citing weak consumer spending in China and rising raw material costs.
The company’s share price fell nearly 25% in 2024, shaking confidence in its future.
Shares, however, edged up slightly by 0.13% to 75.49 Swiss francs on Monday following news of the leadership change.
Freixe now joins a growing list of top executives forced out of their positions over inappropriate workplace relationships.
Bernard Looney of BP resigned in 2023 after failing to disclose past liaisons with colleagues.
McDonald’s CEO Steve Easterbrook was ousted in 2019 for a similar breach, while Intel’s Brian Krzanich stepped down in 2018 after admitting to a past consensual relationship that violated company policy.
Nestlé emphasized that while Freixe’s departure was regrettable, the company remains focused on stabilizing its operations and regaining consumer trust amid shifting market dynamics.
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