Swiss company Nestlé fired Chief Executive Officer Laurent Freixe on Monday (1 Sep) after discovering he had an undisclosed romantic relationship with a direct subordinate.
The 63-year-old executive breached the corporation’s code of business conduct by failing to disclose the relationship. Freixe had taken over as CEO just one year ago in September 2024, replacing Mark Schneider who was ousted from the position.
Nestlé CEO Dismissed Following Investigation Into Undisclosed Workplace Romance
A whistleblower alerted the company to the romantic relationship through an internal company hotline earlier this year. The board of directors immediately opened an investigation into the matter.
The first probe proved inconclusive. Freixe initially denied the relationship to the board during this investigation.
Concerns persisted, prompting the company to launch a second investigation. The probe was overseen by chair Paul Bulcke and lead independent director Pablo Isla with support from outside counsel.
The relationship was subsequently confirmed.
Freixe will not receive an exit package following his dismissal after 40 years at the company.
“This was a necessary decision,” Bulcke said in a statement to The Guardian. “Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service.”
Company Appoints Nespresso Head as New Chief Executive Amid Performance Struggles
Nestlé named Philipp Navratil as Freixe’s replacement. Navratil previously headed the Nespresso coffee unit.
The appointment comes during challenging times for the food and drink conglomerate. Company shares have fallen 17 per cent over the past year, underperforming against rivals.
Bulcke described Navratil as “recognised for his impressive track record of achieving results in challenging environments”. The board expressed confidence that he will drive growth plans forward and accelerate efficiency efforts.
Navratil started with Nestlé in 2001 as an internal auditor. He held various commercial roles in Central America before being appointed country manager for Nestlé Honduras in 2009.
He assumed leadership of the coffee and beverage business in Mexico in 2013. Navratil moved to Nestlé’s coffee strategic business division in 2020 and then to Nespresso in July 2024.
He joined Nestlé’s executive board on 1 Jan 2025. Bulcke announced in June that he will step down as chair in 2026.
Nestlé owns consumer goods brands including KitKat chocolate, Häagen-Dazs ice cream and Nespresso coffee capsules. A similar incident occurred earlier this year when Astronomer CEO Andy Byron was sacked after being caught cheating at a Coldplay concert with the company’s human resources lead.
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