Nestlé CEO Laurent Freixe Dismissed Due to Breach of Conduct Code

Nestlé has officially dismissed its chief executive, Laurent Freixe, following an investigation into an undisclosed romantic relationship with a subordinate, a violation of the company's code of business conduct. The prestigious Swiss multinational has announced that Philipp Navratil will take over as the new chief executive. Freixe's departure comes after a remarkable 40 years at Nestlé and follows a thorough investigation led by chairman Paul Bulcke and lead independent director Pablo Isla, aided by external legal counsel. In a statement, Bulcke emphasized that this decision was necessary, asserting, "Nestlé's values and governance are strong foundations of our company. I thank Laurent for his years of service." Laurent Freixe stepped into the role of chief executive in September 2022, after his predecessor, Mark Schneider, was ousted. Nestlé, known for its extensive portfolio of consumer goods including KitKat, Häagen-Dazs, and Nespresso, entrusted Freixe with steering the company forward after a significant transition in leadership. Philipp Navratil, who has been recognized for a remarkable track record in achieving results even in challenging environments, has been appointed as Freixe's successor. Bulcke highlighted Navratil's dynamic presence, indicating that he inspires teams and implements a collaborative, inclusive management style. The board is optimistic that Navratil will effectively drive growth and accelerate efficiency initiatives within the company, stating, "We are not changing course on strategy and we will not lose pace on performance." Navratil’s journey with Nestlé began in 2001 as an internal auditor. Over the years, he advanced through various commercial roles across Central America, eventually becoming the country manager for Nestlé Honduras in 2009. His career trajectory continued as he took leadership of the coffee and beverage business in Mexico in 2013 and later transitioned to the company’s coffee strategic business division in 2020. Most recently, he moved to Nespresso in July 2024 and joined Nestlé's executive board at the beginning of this year. This incident follows a similar pattern in the corporate world as the CEO of oil giant BP, Bernard Looney, also resigned after failing to disclose relationships with colleagues. Looney was formally dismissed from his position for serious misconduct after an internal investigation revealed that he misled directors about his past relationships and future conduct. This resulted in him losing more than $32 million in pay and shares. In response to these events, BP has introduced a policy to mandate that employees disclose intimate relationships with colleagues or face severe repercussions. The recent turn of events at Nestlé signals a significant shift in leadership dynamics and emphasizes the importance of adhering to corporate governance standards. Related Sources: • Source 1 • Source 2