Global food and beverage giant, Nestlé, has sacked its Chief Executive Officer, Laurent Freixe, after an internal probe confirmed he failed to disclose a romantic relationship with a subordinate.
The company’s board announced the decision on Monday, describing the conduct as a “serious breach” of Nestlé’s Code of Business Conduct.
“The board has concluded that Mr. Freixe’s failure to disclose this relationship represented a clear lapse in judgment and violated our governance standards. Effective immediately, he is relieved of his duties,” Nestlé said in a statement.
Freixe, 62, had been appointed CEO in September 2024, replacing Mark Schneider. He joined Nestlé in 1986 and rose through the ranks, holding senior positions across Europe and Latin America before becoming head of the Americas zone.
Following his dismissal, the board named Philipp Navratil, head of Nestlé’s Nespresso division, as the new CEO. Navratil, who joined the group in 2001, has overseen several of the company’s major coffee brands, including Nescafé and Starbucks products.
Chairman Paul Bulcke said the swift transition was necessary to safeguard Nestlé’s values and stability. “Our governance is non-negotiable. I thank Laurent for his long years of service, but the company must uphold the highest standards,” Bulcke stated.
The ouster comes amid heightened scrutiny of corporate leadership globally, with several multinational CEOs stepping down this year over ethical lapses. Analysts say the move is likely to reassure investors but raises fresh questions about Nestlé’s leadership pipeline, coming at a time when the company is battling weak growth and rising costs.
Freixe has not yet commented publicly on his dismissal.
