Nestlé has abruptly fired its CEO, Laurent Freixe, just one year into his tenure. The dismissal followed an investigation that revealed he had a romantic relationship with a direct subordinate and failed to disclose it, which is a breach of the company’s code of business conduct. Nestlé has named Philipp Navratil, a veteran insider and former head of the Nespresso coffee unit, as the new CEO. Freixe will not receive an exit package.
What Led to the Dismissal?
The company received a tip through an internal hotline and launched two separate probes. The second investigation, overseen by the chairman and with the help of an external firm, confirmed the relationship. The company’s chairman, Paul Bulcke, stated that the decision was necessary to uphold Nestlé’s values and governance.
Broader Context and Future Implications
Freixe’s sudden departure is the second time in two years that Nestlé has replaced its CEO, raising concerns among analysts about the company’s future direction. This event also reflects a broader trend among global companies where top management’s personal conduct is under increased scrutiny, with similar recent cases at other major firms like Unilever and Hershey.
