(Reuters) -Nestle has abruptly dismissed its CEO Laurent Freixe for failing to disclose a romantic relationship with a subordinate, the Swiss food giant said on Monday, a dramatic removal a year after he took the reins.
The maker of products ranging from KitKat to Nesquik said that it had appointed veteran insider Philipp Navratil, who had headed the Nespresso coffee unit, as Freixe's successor with immediate effect.
The shock departure threatens more volatility for Nestle amid a tough consumer environment
and the global threat of trade tariffs. The firm announced in June that long-standing Chairman Paul Bulcke would stand down next year.
Nestle said Freixe's departure follows an investigation overseen by Bulcke and Lead Independent Director Pablo Isla into an undisclosed romantic relationship with a direct subordinate, which breached the company's code of business conduct.
"This was a necessary decision," said Bulcke in a statement. "Nestle's values and governance are strong foundations of our company. I thank Laurent for his years of service."
"We are not changing course on strategy and we will not lose pace on performance."
Company veteran Freixe took over the CEO role exactly one year ago after Nestle ousted his predecessor Mark Schneider.
The sudden exit is the latest management reshuffle at a global consumer goods and food company this year, including Nestle rival Unilever, Diageo and Hershey.
Kohl's fired CEO Ashley Buchanan in May after an investigation found he had pushed for deals with a vendor with whom he had a personal relationship, after little more than 100 days in the position.
Navratil began his career with Nestle in 2001 as an internal auditor. After holding various commercial roles in Central America, he was appointed country manager for Nestle Honduras in 2009.
He assumed leadership of the coffee and beverage business in Mexico in 2013, and transitioned to Nestle's Coffee strategic business unit in 2020.
He moved to Nespresso in July 2024, and joined the Nestle executive board on January 1 this year.
(Reporting by Rhea Rose Abraham in Bengaluru; Writing by Adam Jourdan; Editing by Tomasz Janowski, Jan Harvey and Andrea Ricci)
