Swiss food major Nestlé said on Monday it has dismissed Chief Executive Laurent Freixe with immediate effect over a code of conduct violation, after he failed to disclose a romantic relationship with a direct
subordinate.
The decision followed an internal and external investigation overseen by Chairman Paul Bulcke and Lead Independent Director Pablo Isla. The inquiry was triggered by a complaint filed through Nestlé’s whistleblowing channel, according to a BBC report.
Nestlé has appointed veteran executive Philipp Navratil, former head of its Nespresso coffee business, as the new CEO, also effective immediately. The abrupt change comes at a time when the company faces slowing consumer demand and heightened uncertainty from U.S. trade tariffs.
Freixe had taken over as CEO in September last year after the ouster of Mark Schneider. He had been with Nestlé for four decades, but the company confirmed he will not receive an exit package.
Chairman Bulcke said in a statement: “This was a necessary decision. Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service.”
The alleged relationship of Freixe was with an employee who wasn’t part of the executive board and the probe was launched as it represented a conflict of interest, BBC reported.
According to a Nestle spokesperson, “We acted at all times in line with best practice corporate governance. The external investigation was opened shortly after the initial internal investigation, and today’s decision shows that we are taking allegations and investigations seriously.”
The episode adds to rising scrutiny of corporate leadership conduct globally. In July, Astronomer CEO Andy Byron resigned after being filmed in an intimate moment with an employee at a Coldplay concert.
Nestlé had earlier announced that Bulcke, its long-time chairman, will step down next year.
