Swiss food giant, Nestlé has dismissed its CEO, Laurent Freixe with immediate effect over a breach of the company’s code of conduct. The dismissal followed an internal and external investigation into Freixe’s failure to disclose a romantic relationship with a direct subordinate, a situation considered a conflict of interest under corporate-governance rules.
Nestlé said the relationship represented a conflict of interest as the employee was part of Freixe’s reporting line, though not on the executive board.
Philipp Navratil, who previously headed the Nespresso coffee business, has been appointed as the new CEO. The leadership change comes at a challenging time for Nestlé, which is navigating a tough consumer environment and uncertainty linked to US trade tariffs.
The investigation into Freixe’s conduct was triggered by a report filed through Nestlé’s whistleblowing channel. The company emphasised that the process followed best practices in corporate governance.
Freixe, who had taken over as CEO in September last year after the removal of his predecessor Mark Schneider, had been associated with Nestlé for four decades. However, the company has confirmed that he will not receive an exit package.
The development comes as Nestlé prepares for a leadership transition, with Paul Bulcke set to step down as chairman next year. Bulcke joined Nestlé in 1979 and rose through the ranks to become the company’s CEO from 2008 to 2016. After stepping down as CEO, he took over as Chairman of the Board, a role in which he oversees governance and overall strategy rather than day-to-day operations. He was also a part of the investigation against Frexie.
Meanwhile, top management conduct has come under increasing global scrutiny. In the US, Andy Byron, CEO, Astronomer, resigned in July after being captured oon camera embracing a staffer at a Coldplay concert.
