Global food conglomerate Nestlé has dismissed its chief executive, Laurent Freixe, after just one year in office for failing to disclose a romantic relationship with a direct subordinate, the company announced on Wednesday.
The Swiss multinational, known for brands such as Kit Kat, Nescafé, and Nespresso, said Freixe’s termination was effective immediately following an internal investigation led by Nestlé’s chairman Paul Bulcke and lead independent director Pablo Isla, with support from external legal counsel.
According to the BBC, the probe began after a complaint was filed through Nestlé’s whistleblowing channel. The relationship reportedly posed a conflict of interest, as the employee involved worked under Freixe but was not a member of the executive board.
Nestlé chair 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.”
Freixe, who had spent nearly four decades at Nestlé before becoming global CEO in September 2024, denied the relationship throughout both investigations, the company confirmed. He will not receive an exit package.
Following his dismissal, Nestlé appointed Philipp Navratil, a long-serving executive with the company since 2001, as the new chief executive. Bulcke added that Nestlé “will not change course on strategy” and intends to maintain its current business momentum.
The case mirrors similar corporate shake-ups in recent years. BP’s former CEO Bernard Looney resigned in 2023 after failing to disclose past relationships with colleagues, while McDonald’s ousted Steve Easterbrook in 2019 under comparable circumstances.
Nestlé emphasized that it acted “in line with best practice corporate governance,” stating that the decision “demonstrates the company’s commitment to transparency and accountability.”
Bulcke is expected to step down as chairman next year, with Pablo Isla, former Inditex (Zara) chief, proposed as his successor.
The BBC said it has reached out to Mr. Freixe for comment.