Nestlé has dismissed its chief executive, Laurent Freixe, after just one year at the helm, citing his failure to disclose a romantic relationship with a direct subordinate. The Swiss food giant announced the decision Monday, saying the move takes “immediate effect.”
The dismissal follows an internal investigation led by Nestlé’s chair, Paul Bulcke, and independent director Pablo Isla, with the support of external counsel. According to people familiar with the matter, the inquiry began after a report was filed through the company’s whistleblowing channel.
“The decision was necessary,” Mr. Bulcke said in a statement. “Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his many years of service.”
The company stressed that the employee involved was not a member of the executive board but that the relationship created a conflict of interest. Nestlé confirmed that Mr. Freixe, who had been with the company for nearly 40 years, will not receive an exit package.
Freixe was appointed chief executive in September 2023, succeeding Mark Schneider. His abrupt departure brings to an end a four-decade career at Nestlé, where he had risen through the ranks across multiple regions before reaching the top job.
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He will be succeeded by Philipp Navratil, a veteran of the company since 2001. Nestlé said its strategy and performance goals remain unchanged despite the leadership shake-up.
The scandal echoes similar high-profile exits at other multinational corporations. BP chief executive Bernard Looney resigned last year after admitting he was not initially transparent about past relationships with colleagues. McDonald’s ousted Steve Easterbrook in 2019 for a consensual relationship with an employee, later uncovering additional relationships. Easterbrook initially walked away with a $105 million severance package, which he later returned, and in 2023 was fined $400,000 by U.S. regulators for misleading investors.
Nestlé, whose brands include KitKat, Nespresso, and Gerber baby food, has long prided itself on strict corporate governance. Freixe’s dismissal underscores how personal conduct at the top of global companies is increasingly scrutinized — and how swiftly boards are willing to act when they believe trust has been broken.