Nestlé fires CEO over ‘undisclosed romantic relationship’ with direct subordinate

Laurent Freixe, the chief executive of Nestlé, has been fired following an investigation into an “undisclosed romantic relationship” that he had with a direct subordinate.

Took over just a year ago

He had just taken over the reins of the company as CEO a year ago, according to Reuters.

The relationship that Freixe had was found to have breached the corporation's code of business conduct.

His departure came after 40 years at the company.

Freixe assumed the chief executive role in September 2024 after Nestlé ousted his predecessor, Mark Schneider.

Whistleblower

A company spokesman told Reuters that a whistleblower alerted the company to the romantic relationship.

An internal company hotline received a report earlier this year regarding concerns about a possible relationship between Freixe and a direct report.

The board of directors immediately opened an investigation into the matter, which was inconclusive, this person added, according to Reuters.

As the concerns persisted, the company launched a second probe.

The investigation was overseen by its chair, Paul Bulcke, and lead independent director, Pablo Isla, with the support of outside counsel.

The relationship was confirmed.

Freixe had initially denied the relationship to the board, the spokesperson added.

The ousted executive will not receive an exit package after his dismissal, Nestlé told Reuters.

Nestlé owns consumer goods brands including KitKat chocolate, Häagen-Dazs ice-cream and Nespresso coffee capsules.

Replacement

The Swiss-headquartered multinational named Philipp Navratil as his replacement.

“This was a necessary decision,” said Bulcke in a statement, according to The Guardian.

“Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service.”

Bulcke, who Nestlé announced in June is set to step down as chair in 2026, added that Navratil was “recognised for his impressive track record of achieving results in challenging environments”.

"The board is confident that he will drive our growth plans forward and accelerate efficiency efforts," Bulcke said.

Navratil started out with Nestlé in 2001 as an internal auditor.

He then held various commercial roles in Central America and was appointed country manager for Nestlé Honduras in 2009.

He assumed leadership of the coffee and beverage business in Mexico in 2013.

He was moved to Nestlé’s coffee strategic business division in 2020 and then to Nespresso in July 2024.

He joined Nestlé’s executive board on Jan, 1, 2025.

Top photo via Bühler Group YouTube