Nestlé Fires CEO Over “Undisclosed Romantic Relationship With Direct Subordinate” 

Nestlé shares are lower in Switzerland after the company abruptly terminated its CEO, Laurent Freixe, for an undisclosed relationship with a direct subordinate.

“The departure of Laurent Freixe follows an investigation into an undisclosed romantic relationship with a direct subordinate which breached Nestlé’s Code of Business Conduct,” Nestlé wrote in a press release. 

Philipp Navratil, head of Nespresso, was named as Freixe’s replacement. Leadership turmoil at the world’s largest food company has been particularly volatile: Freixe joined the team about a year ago, following the ouster of Mark Schneider.

Nestlé Chairman Paul Bulcke wrote in a statement: “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.”

Bulcke continued: “I am pleased to announce Philipp Navratil as CEO. Philipp is recognized for his impressive track record of achieving results in challenging environments.” 

The undisclosed romantic relationship surfaced through the company’s internal “speak up” system, prompting an internal investigation by Chairman Bulcke and lead director Pablo Isla, with the support of outside counsel. Freixe will not receive an exit package. 

One has to wonder whether Freixe’s ouster, pitched to the public as a romantic relationship with a direct subordinate that violated company guidelines, was in fact more about Nestlé’s weak performance, with shares in Switzerland failing to rebound this year and hovering near five-year lows.

. . .