Nestle has terminated the contract of its chief executive, Laurent Freixe, after just one year at the helm due to a failure to disclose a romantic relationship with a direct subordinate.
The Swiss food giant, well-known for products such as Kit Kat and Nespresso coffee capsules, announced that Freixe was dismissed with immediate effect following an investigation led by Nestle's chair and lead independent director.
The internal inquiry was initiated after a report was made through the company’s whistleblowing channel. Nestle chair Paul Bulcke expressed: This was a necessary decision. Nestlé's values and governance are strong foundations of our company. I thank Laurent for his years of service at Nestlé.
The relationship in question involved an employee not on the executive board, raising concerns about potential conflicts of interest. Freixe, a veteran of the company with nearly 40 years of service, stepped into the global chief executive role in September, succeeding Mark Schneider.
In the wake of the changes, Philipp Navratil has been appointed as Freixe’s successor. Despite the shake-up in leadership, Bulcke reassured stakeholders that the company is not altering its strategic direction or losing momentum in performance.
