Nestlé has dismissed its CEO, Laurent Freixe, following an investigation into an undisclosed romantic relationship with a subordinate, which was found to violate the company’s code of conduct. The Swiss multinational announced Philipp Navratil as his replacement.
The company revealed that Freixe’s departure, after 40 years with Nestlé, was the result of an internal probe overseen by Chairman Paul Bulcke and lead independent director Pablo Isla, with support from external legal counsel. The investigation focused on Freixe’s relationship with a direct subordinate, which breached the firm’s governance standards.
Nestlé’s statement emphasised that the decision was necessary to uphold its values and maintain strong governance. The company expressed gratitude for Freixe’s long service, which included taking over as CEO last September after the departure of Mark Schneider.
Philipp Navratil, who will now lead the company, is recognised for his impressive track record in challenging environments. The board believes his collaborative and inclusive leadership style will help drive growth and improve efficiency. They are committed to continuing their current strategy, aiming for sustained performance.
Navratil started his career at Nestlé in 2001 as an internal auditor. Over the years, he held various roles, including managing operations in Central America, leading the coffee division in Mexico, and overseeing Nestlé’s coffee business globally. He joined Nespresso in July 2024 and became a member of Nestlé’s executive board in January this year.
This leadership change follows a wider trend of corporate accountability, with other global companies also facing scandals involving undisclosed relationships. For example, BP dismissed its CEO Bernard Looney last September after he failed to disclose past relationships, which led to a loss of over £32 million in pay and awards.
The incident at BP prompted the company to implement a new policy requiring employees to report intimate relationships with colleagues or face termination.