Nestlé has terminated the employment of its chief executive, Laurent Freixe, after one year in the position due to his failure to disclose a romantic relationship with a direct subordinate. The Swiss multinational corporation, known for products such as Kit Kat and Nespresso, announced that Freixe’s dismissal was effective immediately and followed an investigation led by the chair and lead independent director of the company.
Sources indicate that the investigation was initiated after a report was made through Nestlé’s whistleblowing channel, suggesting a breach of proper governance due to the disclosed relationship. The employee involved is not a member of the executive board, and the underlying concern was identified as a conflict of interest.
Freixe had a long tenure with Nestlé, spanning nearly four decades, and he assumed the role of global chief executive in September of the previous year after succeeding Mark Schneider. Following his dismissal, Philipp Navratil has been appointed as his successor.
In response to Freixe’s dismissal, Nestlé chair Paul Bulcke emphasized the company’s commitment to its values and governance standards, stating that Freixe’s service was appreciated. Bulcke also reassured stakeholders that the company’s strategic direction and performance objectives would remain unchanged despite this leadership shift.
Source: https://www.bbc.com/news/articles/c1mpm9ee9p9o?at_medium=RSS&at_campaign=rss