Highlights:
- Nestle dismisses CEO Laurent Freixe for not disclosing a romantic relationship with a subordinate
- Philipp Navratil appointed as new CEO immediately
- Freixe will not receive any exit package
- The company faces challenges amid tough consumer markets and US trade tariffs
- Nestle’s leadership sees frequent changes, raising questions on company strategy
Sudden Dismissal of Nestlé CEO
Swiss food giant Nestle has suddenly removed Laurent Freixe from his position as CEO, just one year after he assumed the role. The company cited his failure to disclose a romantic relationship with a direct subordinate, which violated Nestlé’s code of business conduct.
It produces global brands such as KitKat, Nescafe, and Nesquik, and Freixe’s departure comes amid a challenging market environment and disruptive US trade tariffs.
Read More: BFIU Orders Banks to Freeze Nagad Ex-MD Tanvir Mishuk and Others Accounts
Investigation and Findings
Concerns about a possible relationship first emerged in the spring through an internal company hotline. An initial investigation by the board was inconclusive.
However, after persistent concerns, a second investigation was launched, overseen by Chairman Paul Bulcke and Lead Independent Director Pablo Isla, with assistance from an external firm. The probe confirmed the undisclosed relationship.
Freixe had initially denied the relationship to the board. Following the confirmation, Nestlé decided to dismiss him, and he will not receive an exit package.
Chairman Bulcke stated:
“This was a necessary decision. Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service.”
Philipp Navratil Appointed as New CEO
Philipp Navratil, a long-time Nestlé executive, has been appointed as CEO with immediate effect. Navratil previously led Nestle’s Nespresso coffee unit and has held various roles within the company since 2001, including:
-
Internal auditor at Nestlé
-
Country manager for Nestlé Honduras (2009)
-
Leadership of coffee and beverage business in Mexico (2013)
-
Head of Nestlé Coffee strategic business unit (2020)
-
Joined Nespresso in July 2024 and Nestlé executive board in January 2025
Market Reaction and Corporate Challenges
Freixe’s abrupt removal comes exactly a year after Mark Schneider, his predecessor, was dismissed. Analysts suggest the frequent changes in leadership raise questions about Its mid-term strategy.
JP Morgan analysts noted:
“This new change is likely to keep afloat the question mark about the mid-term direction of the company.”
Nestle shares have fallen 17% over the past year, underperforming compared to rivals and broader markets. The company’s governance and executive conduct are now under close scrutiny, especially in the United States, following similar management shake-ups at other global firms like Unilever, Diageo, and Hershey.
Context: Executive Conduct Under Scrutiny
The removal highlights increasing attention on top management behaviour. Examples include:
-
Kohl’s CEO Ashley Buchanan was fired in May after pushing deals with a vendor he had a personal relationship with
-
Astronomer CEO Andy Byron resigned in July after being filmed embracing a staffer at a concert
Its decisive action reflects its commitment to corporate governance and ethical conduct, even at the highest levels of management.
Source: Reuters
