Food giant Nestlé announced Monday it has dismissed Chief Executive Officer Laurent Freixe after an internal investigation found he engaged in an undisclosed romantic relationship with a direct subordinate, breaching the company’s Code of Business Conduct.
Breach of Conduct
The investigation began after employees raised concerns through Nestlé’s internal hotline.
An initial review found no evidence, and Freixe denied the claims, but further inquiries — led by board chairman Paul Bulcke, lead independent director Pablo Isla, and outside counsel — confirmed the relationship.
“This was a necessary decision. Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service at Nestlé,” Bulcke said in a statement.
Freixe, who spent 39 years at Nestlé, will receive no exit package.
New Leadership
Nestlé’s board named Philipp Navratil as the new CEO.
Reuters described him as “a rising star” at the company, tasked with stabilizing operations amid slowing sales, U.S. tariffs, and eroding investor confidence.
Investor Ingo Speich of Deka Investments called the leadership shake-up “historic,” noting:
“The loss of two CEOs and a chairman in a year is of historic proportions for Nestlé. The new CEO needs to fix the business model and bring volumes back. He needs to do better M&A and focus more on emerging markets.”
Recent Leadership Turmoil
Freixe had replaced Mark Schneider, who was dismissed in August 2024. With two CEO departures in just over a year, Nestlé faces renewed scrutiny from investors over governance and strategy.
Nestlé, headquartered in Switzerland, is the world’s largest food company, with annual revenues nearing $103 billion, according to FoodIndustry.com.
