Nestlé has dismissed its chief executive, Laurent Freixe, following an investigation into an undisclosed romantic relationship with a subordinate, which breached the company's code of business conduct. The Swiss multinational announced that Philipp Navratil will replace Freixe immediately.
The investigation, overseen by chair Paul Bulcke and lead independent director Pablo Isla with external counsel, concluded that Freixe's relationship with a direct subordinate violated Nestlé's conduct code. 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 been with Nestlé for 40 years, took over as CEO in September 2024 after his predecessor Mark Schneider was ousted. Navratil, who began his Nestlé career in 2001 as an internal auditor, most recently served as head of Nespresso and joined the executive board in January 2025.
Bulcke, who is set to step down as chair next year, expressed confidence in Navratil, describing him as 'renowned for his dynamic presence' and capable of driving growth plans forward. 'We are not changing course on strategy and we will not lose pace on performance,' Bulcke added.
This follows a similar incident in September 2023 when BP CEO Bernard Looney resigned after failing to disclose past relationships with colleagues. Looney was later formally dismissed for serious misconduct, losing over £32 million in pay and share awards.
