Nestlé has announced the dismissal of its chief executive, Laurent Freixe, following an internal investigation that revealed an undisclosed romantic relationship with a direct subordinate in breach of the company’s code of business conduct. Freixe’s sudden departure marks the end of his 40-year career with the Swiss multinational, raising questions about leadership accountability and corporate governance at one of the world’s largest food and beverage companies.
The inquiry, overseen by Nestlé’s chair Paul Bulcke and lead independent director Pablo Isla, with the support of external counsel, concluded that the relationship violated the company’s strict standards on workplace ethics and integrity.
YOU CAN ALSO READ: GTCO Blends Regulation, Strategy with Landmark N365.9 Billion Boost to GTBank
“This was a necessary decision,” Bulcke said in a statement. “Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service.”
Freixe, who had been appointed chief executive only in September last year, replaced Mark Schneider, who was ousted in 2023 after a turbulent tenure. His exit comes at a delicate moment for Nestlé, whose global portfolio spans iconic brands such as KitKat, Häagen-Dazs, and Nespresso, and underscores the increasing scrutiny of top executives over personal conduct in the corporate world.
The company has moved swiftly to appoint Philipp Navratil as the new chief executive. Nestlé described Navratil as a proven leader with “an impressive track record of achieving results in challenging environments.” Bulcke praised his successor’s collaborative approach, saying: “He is renowned for his dynamic presence, he inspires teams and leads with a collaborative, inclusive management style. The board is confident that he will drive our growth plans forward and accelerate efficiency efforts. We are not changing course on strategy and we will not lose pace on performance.”
Navratil’s rise through the company has been steady. He joined Nestlé in 2001 as an internal auditor, later taking on commercial roles across Central America. By 2009, he was country manager for Nestlé Honduras, before assuming leadership of the coffee and beverage business in Mexico in 2013. In 2020, he transitioned to Nestlé’s coffee strategic business division and most recently moved to Nespresso in July 2024, before joining the executive board on January 1 this year. His promotion to CEO signals Nestlé’s determination to reinforce stability and maintain its strategic direction despite the leadership shake-up.
Freixe’s ouster echoes a broader trend in global corporate governance, where personal misconduct among executives is increasingly leading to swift and public consequences. In a notable parallel, BP’s chief executive Bernard Looney resigned in September 2023 after failing to disclose past relationships with colleagues. He was later formally dismissed for serious misconduct when the board determined he had knowingly misled directors regarding his disclosures and future behaviour.
YOU CAN ALSO READ: Atedo Peterside, Ibukun Awosika, Fela Durotoye, Others for Building Beyond You Conference
For Nestlé, the leadership transition comes at a critical juncture. With Bulcke himself set to step down as chair next year, the company faces the challenge of ensuring smooth succession while delivering on its growth ambitions and defending its reputation as a values-driven multinational. The swift replacement of Freixe with Navratil suggests Nestlé is eager to reassure investors, employees, and consumers that its governance systems remain strong and its business momentum will not falter.
