Nestlé has terminated the contract of its Chief Executive Officer, Laurent Freixe, following an investigation into an undisclosed romantic relationship with a subordinate, which violated the company’s code of business conduct. The Swiss multinational has appointed Philipp Navratil as Freixe’s successor.
Freixe’s departure from the company, where he had worked for 40 years, was the result of an inquiry led by Nestlé’s chair, Paul Bulcke, and lead independent director, Pablo Isla, with assistance from external legal counsel. Bulcke stated that the decision was necessary to uphold the company’s values and governance.
Freixe began his role as CEO in September 2022 after the company removed his predecessor, Mark Schneider. Navratil, recognized for his strong performance in challenging environments, is noted for fostering a collaborative management style. The board expressed confidence that he would advance the company’s growth strategies while maintaining performance levels.
Navratil has had a long career with Nestlé, beginning in 2001 as an internal auditor. He has held various roles, including country manager for Nestlé in Honduras and head of the coffee and beverage division in Mexico. Most recently, he transitioned to Nespresso in July 2024 and joined Nestlé’s executive board at the start of this year.
The recent changes at Nestlé occur in the context of similar corporate governance issues seen at other companies. For instance, the CEO of BP resigned in September 2023 for not disclosing personal relationships with colleagues, resulting in significant financial repercussions and changes in the company’s disclosure policies regarding employee relationships.
This incident at Nestlé raises questions about the enforcement of corporate conduct codes and the potential need for clearer guidelines surrounding workplace relationships.
Source: https://www.theguardian.com/business/2025/sep/01/nestle-fires-ceo-after-investigation-into-undisclosed-romantic-relationship