Nestlé Dismisses CEO Over Undisclosed Relationship with Subordinate
Global food giant Nestlé has dismissed its Chief Executive Officer, Laurent Freixe, effective immediately after an investigation found he violated the company's code of conduct. The investigation revealed an undisclosed romantic relationship with a direct subordinate. Freixe had been in the top role for just one year. The company announced that Philipp Navratil, a long-time Nestlé executive and current CEO of the Nespresso division, will take over as the new CEO, emphasizing the importance of its corporate values and governance.
Unpacked:
Laurent Freixe violated Nestlé’s code of conduct by having an undisclosed romantic relationship with a direct subordinate, which is considered inappropriate and a breach of company policy regarding conflicts of interest and professional boundaries.
Laurent Freixe joined Nestlé in 1986 and worked in various roles—including marketing, sales, and regional leadership—before being appointed CEO in September 2024, giving him nearly 39 years with the company prior to his dismissal.
Philipp Navratil began his Nestlé career in 2001 as an internal auditor, later held roles in Central America, joined the Coffee Strategic Business Unit in 2020, and became CEO of Nespresso in 2024 before being appointed as Nestlé’s new CEO.
Yes, Laurent Freixe was the second CEO in 12 months, indicating leadership instability. The company has also faced slowing sales, a 16% stock decline over the past year, and challenges from inflation and changing consumer habits.