The world’s largest food company, Nestlé, has dismissed its global chief executive, Laurent Freixe, after an internal probe confirmed that he failed t
The world’s largest food company, Nestlé, has dismissed its global chief executive, Laurent Freixe, after an internal probe confirmed that he failed to disclose a romantic relationship with a subordinate, breaching the company’s code of conduct.
The Swiss multinational, maker of household brands such as Kit Kat, Mil, Maggi, and Nespresso, announced on Monday that the dismissal was with “immediate effect.”
The decision followed an investigation overseen by Nestlé chair Paul Bulcke and independent director Pablo Isla, with the assistance of external legal counsel.
Whistleblower Complaint Triggers Probe
According to the BBC, the matter came to light after an anonymous report was filed through the company’s whistleblowing channel.
Though initial internal inquiries earlier this year found no evidence of wrongdoing, persistent concerns prompted Nestlé to commission an independent investigation.
This subsequent probe upheld the allegations, confirming that Freixe’s relationship with a direct subordinate created a conflict of interest.
“Nestlé’s values and governance are strong foundations of our company. This was a necessary decision,” said Bulcke, while thanking Freixe for nearly four decades of service.
A Short-Lived Tenure at the Helm
Laurent Freixe, who had spent close to 40 years rising through the ranks of Nestlé, was only appointed global chief executive in September 2024.
He succeeded Mark Schneider with a mandate to drive innovation and strengthen Nestlé’s market dominance amid shifting consumer trends.
However, his tenure has ended abruptly just one year into the role. Nestlé has confirmed he will not receive an exit package.
Attempts by the BBC to reach him for comment have so far been unsuccessful.
Succession Plan in Place
In a swift move to stabilize leadership, Nestlé has appointed Philipp Navratil, a company veteran since 2001, as Freixe’s successor.
Navratil has held several senior roles within the group and is expected to maintain continuity in strategy.
Bulcke assured shareholders and employees that the company remains on course: “We will not lose pace on performance.” Meanwhile, Nestlé is preparing for further leadership transition as Bulcke himself is set to step down as chair next year, with Pablo Isla—former head of fashion giant Inditex—tipped to take over.
Not the First Corporate Scandal of Its Kind
Freixe’s dismissal places Nestlé among a growing list of global corporations forced to sever ties with top executives over workplace relationships.
In 2019, McDonald’s sacked its chief executive, Steve Easterbrook, after it was revealed he had engaged in multiple consensual relationships with employees, misleading the board about their extent. Easterbrook eventually paid $400,000 in penalties to U.S. regulators.
Similarly, BP’s chief executive Bernard Looney resigned in 2023 after admitting he had not been fully transparent about his past personal relationships with staff.
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