Nestlé CEO Laurent Freixe Fired After Failing to Disclose Relationship With Subordinate

Swiss food giant Nestlé, maker of household staples such as KitKat, Nespresso, and Maggi noodles, announced on Tuesday that Chief Executive Officer Laurent Freixe has been dismissed with immediate effect after failing to disclose a romantic relationship with a direct subordinate.

The decision comes after an investigation led by Nestlé’s chair, Paul Bulcke, and independent director Pablo Isla, with the support of external legal counsel. The inquiry was reportedly triggered by a complaint lodged through Nestlé’s whistleblowing channel.

“This was a necessary decision. Nestlé’s values and governance are strong foundations of our company,” Paul Bulcke said in a statement, thanking Laurent Freixe for his nearly four decades of service.

From Long Career to Abrupt Fall

Laurent Freixe, who had been with Nestlé for almost 40 years, only stepped into the global CEO role in September 2024, replacing longtime chief executive Mark Schneider. Despite his longstanding track record, Nestlé confirmed that Laurent Freixe will not receive any exit package following his dismissal.

The Financial Times reported that concerns about Laurent Freixe’s relationship surfaced earlier this year. An initial internal review found the claims unsubstantiated, but persistent complaints led to a second investigation with external oversight, which ultimately upheld the allegations.

Nestlé emphasized that it acted “in line with best practice corporate governance” and underscored that the decision demonstrates the company’s seriousness in handling allegations of misconduct.

Nestlé leadership with CEO Laurent Freixe and Nestlé’s Chair Paul Bulcke

A Successor Steps In

Nestle has named Philipp Navratil, a company veteran since 2001, as the successor to Laurent Freixe. The leadership transition is being framed as seamless, with Paul Bulcke assuring stakeholders that the company will not “lose pace on performance” or deviate from its strategic course.

Navratil inherits a strong-performing company but also the task of reinforcing employee trust and investor confidence following the scandal.

Industry-Wide Scrutiny of CEO Conduct

Laurent Freixe’s ousting places Nestle alongside other major corporations that have parted ways with top executives over undisclosed personal relationships.

In 2019, McDonald’s CEO Steve Easterbrook was fired after admitting to a relationship with an employee, later revealed to have been multiple. Similarly, BP CEO Bernard Looney resigned in 2023 for failing to disclose past relationships with colleagues fully.

The trend underscores the heightened focus on corporate governance, transparency, and power dynamics in the workplace. Executives are increasingly being held accountable not just for financial performance, but for adherence to ethical standards.

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For Nestlé, the scandal may prove disruptive in the short term but could strengthen its reputation for transparency in the long run. By taking swift action, the company is sending a message that personal misconduct at the highest levels will not be tolerated.

With Philipp Navratil stepping in, Nestlé appears intent on ensuring continuity while also tightening governance practices. As competition in the food and beverage sector intensifies, the company’s handling of this leadership crisis will be closely watched by both investors and employees worldwide.