Nestle removes CEO over undisclosed relationship with junior staff member
The Swiss multinational, known for brands such as Kit Kat and Nespresso, announced that Freixe was dismissed with "immediate effect" following an internal investigation led by Nestle’s chair, Paul Bulcke, and lead independent director, Pablo Isla.
Nestle has terminated its chief executive, Laurent Freixe, after he failed to disclose a "romantic relationship" with a "direct subordinate," ending his tenure just one year after taking on the role.
The Swiss multinational, known for brands such as Kit Kat and Nespresso, announced that Freixe was dismissed with "immediate effect" following an internal investigation led by Nestle’s chair, Paul Bulcke, and lead independent director, Pablo Isla.
The inquiry was triggered by a report submitted through the company’s internal whistleblowing system. The relationship in question involved an employee who is not a member of the executive board and was considered a conflict of interest under company policies.
“This was a necessary decision. Nestle’s values and governance are strong foundations of our company. I thank Laurent for his years of service at Nestle,” said Bulcke.
Initial concerns about Freixe’s conduct were reportedly examined earlier in the year during an internal review that found the claims to be unsubstantiated. However, after additional complaints emerged, Nestle launched a second investigation with the support of independent legal counsel, which ultimately upheld the allegations.
On Wednesday, Nestle stated: "Laurent Freixe denied the relationship throughout the course of both investigations."
A Nestle spokesperson stated: “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.”
Freixe, who had been with the company for nearly 40 years, became global chief executive last September, succeeding Mark Schneider. Nestle confirmed he will not be receiving any exit package.
Philipp Navratil, who has been with Nestle since 2001, has been appointed as the new chief executive.
Commenting on the leadership transition, Bulcke said, “We are not changing course on strategy and we will not lose pace on performance.”
Bulcke is expected to step down as chair next year, with Pablo Isla, the former head of fashion group Inditex, proposed as his successor.
