- Nestlé removed CEO Laurent Freixe after an internal probe found he broke conduct rules by not disclosing a relationship with a subordinate.
- The dismissal came after Freixe had served only one year as CEO; Philipp Navratil was appointed as his immediate replacement.
- The board led the investigation with support from external legal counsel, confirming a breach of internal policy.
- Nestlé stock prices remained steady following the leadership change, signaling confidence in company governance.
- Freixe will not receive an exit package, and company statements confirm a focus on ethics and stability.
Nestlé has dismissed CEO Laurent Freixe after an internal investigation revealed he violated company conduct rules by keeping a romantic relationship with a subordinate undisclosed. The action took place after Freixe served in the top executive role for just one year. Veteran executive Philipp Navratil has been named as the new CEO, effective immediately.
Chairman Paul Bulcke and lead independent director Pablo Isla directed the investigation, bringing in external legal advisers. The review determined Freixe had not complied with Nestlé’s code by failing to report his relationship. Official company statements emphasized upholding organizational values and policies.
Paul Bulcke stated, “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 company said Freixe’s conduct led to his exit with no severance pay.
Incoming CEO Philipp Navratil joined Nestlé in 2001 as an internal auditor. He has held various roles in Central America and the global coffee division, including leadership of the Nespresso branch. Navratil commented, “I fully embrace the company’s strategic direction, as well as the action plan in place to drive Nestlé’s performance.”
Freixe’s career at Nestlé began in 1986, with leadership posts in France, Hungary, the Iberian region, and Latin America. He was promoted to CEO following the company’s restructuring in September 2024.
Despite this high-level transition, Nestlé’s share price remained stable. Analysts saw this as a reflection of investor belief in the board’s response and succession planning, even as the company faces rising costs in raw materials and tariffs.
Freixe’s family and personal details have not been made public, as Nestlé stated the investigation focused on work-related matters. The appointment of Navratil, known for his background in coffee sector strategy, was designed to ensure operational continuity and uphold the firm’s standards.
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