Nestlé has dismissed its chief executive, Laurent Freixe, following revelations of a romantic relationship with a direct subordinate. The decision, which took immediate effect, was announced after an internal investigation confirmed a breach of the company’s strict code of business conduct.
In a swift leadership transition, Nespresso CEO Philipp Navratil was appointed by the Nestlé board to take over the role of group CEO.
“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 its statement.
The investigation was overseen by Nestlé chairman Paul Bulcke and lead independent director Pablo Isla, with assistance from external legal counsel. Bulcke described the decision as difficult but necessary: “Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service.”
A Veteran’s Fall
Freixe’s career at Nestlé spanned nearly four decades. He joined the company in France in 1986 and went on to lead the group’s European operations until 2014, successfully steering them through the global financial crisis and the eurozone debt crisis. He later managed the Latin America division before being elevated to CEO in September 2024, in a surprise leadership shake-up designed to boost consumer spending on Nestlé’s products.
However, his tenure was overshadowed by financial challenges. In 2024, Nestlé’s share price fell by nearly 25 percent, sparking concern in Switzerland, where pension funds hold significant stakes in the multinational.
Despite the leadership turmoil, Nestlé shares closed slightly higher on Monday, up 0.13 percent at 75.49 Swiss francs on the Swiss stock exchange. The modest rise reflects cautious optimism as the board seeks to restore stability and investor confidence under Navratil’s leadership.
Nestlé, whose global portfolio includes household names such as Nespresso, KitKat, Purina, Maggi, Gerber, and Nesquik, emphasized its commitment to corporate governance and ethical standards as it enters this new chapter.
