Nestlé, the world’s largest consumer goods company, has dismissed its CEO, Laurent Freixe, following revelations of an undisclosed romantic relationship with a subordinate.
According to Reuters, concerns about a possible relationship first surfaced in the spring through the company’s internal reporting channel “Speak Up.” A board-led investigation followed, during which Freixe had denied the relationship.
Staff concerns persisted, prompting another investigation overseen by Chairman Bulcke and Lead Independent Director Isla and independent outside counsel. This time around, investigators found what they believed to be evidence of a romantic relationship with a direct subordinate. Swiss website Inside Paradeplatz reports that Freixe met the unnamed woman in 2022, when he was head of Nestlé’s Latin America business.
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This relationship violated Nestlé’s code of business conduct, and as reported by Fox Business News, the breach led to Freixe’s immediate removal after just one year in the role. He was not awarded any exit compensation.
“This was a necessary decision. Nestlé’s values and governance are strong foundations of our company,” Chairman Paul Bulcke said. “I thank Laurent for his years of service at Nestlé.”
Nestlé installed Philipp Navratil, previously head of the Nespresso division, as the new CEO.
This is the second CEO exit in less than a year for Nestlé, adding to its financial troubles. The Swiss food giant’s shares have shed 17% during Freixe’s leadership, per Reuters, and the value has plummeted by almost a third over the past five years.
Nestlé, the world’s largest consumer goods company, has dismissed its CEO, Laurent Freixe, following revelations of an undisclosed romantic relationship with a subordinate.
According to Reuters, concerns about a possible relationship first surfaced in the spring through the company’s internal reporting channel “Speak Up.” A board-led investigation followed, during which Freixe had denied the relationship.
Staff concerns persisted, prompting another investigation overseen by Chairman Bulcke and Lead Independent Director Isla and independent outside counsel. This time around, investigators found what they believed to be evidence of a romantic relationship with a direct subordinate. Swiss website Inside Paradeplatz reports that Freixe met the unnamed woman in 2022, when he was head of Nestlé’s Latin America business.
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