Nestlé announced on Monday that it had sacked its Chief Executive, Laurent Freixe, following an investigation into an undisclosed relationship with a subordinate. The dismissal, effective immediately, came after repeated complaints triggered an internal review.
According to the BBC, the issue first emerged when a report was filed through Nestlé’s whistleblowing hotline earlier this year. An initial internal investigation dismissed the claims as unsubstantiated, but the concerns did not stop there. As the complaints continued, Nestlé opened a second probe, this time with external counsel. That inquiry confirmed the relationship and concluded it posed a conflict of interest.
A company spokesperson told Reuters that Freixe had initially denied the relationship to the board.
Nestlé’s official statement
The investigation was led by Nestlé Chairman Paul Bulcke and Lead Independent Director Pablo Isla.
“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,” the company said in its statement.
Bulcke added, “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.”
Nestlé later clarified that it had acted “at all times in line with best practice corporate governance” and that “today's decision shows that we are taking allegations and investigations seriously.”
Who was involved?
The identity of the subordinate has not been disclosed. The BBC reported that the individual was not a member of the executive board.
The Financial Times noted that the matter was first raised earlier this year. Only after the second, externally supported inquiry were the claims upheld.
Who is Laurent Freixe?
Freixe, 63, had been with Nestlé for nearly four decades. He started his career in France in 1986, first in sales and marketing, and later took charge of the Nutrition Division. He went on to lead Nestlé Hungary, the Iberian region, and Zone Europe, before moving to Zone Americas in 2014. In 2022, after a restructuring, he was placed in charge of Zone Latin America.
He became global CEO on 1 September 2024, replacing Ulf Mark Schneider. His tenure ended exactly one year later.
Nestlé had once described Freixe as a “natural leader” who was instrumental in driving performance and innovation. Among his signature initiatives was the “Nestlé Needs YOUth” programme, launched in 2013 to provide opportunities for young workers worldwide.
No golden goodbye
Freixe will not receive any exit package, the company confirmed. His predecessor earned around 9.6 million Swiss francs (£8.7 million) annually, and Freixe was expected to have received a similar salary.
According to Nestlé’s 2024 compensation report, he also held more than 41,000 shares in the company, valued at about 3.6 million US dollars.
Who is Philipp Navratil, the new CEO
Philipp Navratil has been named as the new CEO with immediate effect. Navratil joined Nestlé in 2001 as an internal auditor and went on to hold senior roles across Central America and Mexico. From 2013 to 2020, he led the coffee division in Mexico. More recently, he oversaw the global strategy for brands such as Nescafé and Starbucks before being appointed head of Nespresso in 2024.
In January 2025, he joined the executive board. Upon taking the top role, Navratil said, “I fully embrace the company’s strategic direction, as well as the action plan in place to drive Nestlé’s performance. I will drive the value creation plan with intensity.”
Bulcke stressed that Nestlé was “not changing course on strategy and we will not lose pace on performance.”
The sacking of a CEO at Nestlé is rare. The company, founded in 1866, has faced a challenging year. In July, French regulators raided its offices over alleged unauthorised filtration methods in bottled water. Earlier, Nestlé had to recall frozen meals in the US due to contamination concerns. Rising coffee and cocoa costs have also weighed heavily, although the company offset much of the impact through price increases.
The leadership shake-up also comes as Bulcke prepares to step down as chairman next year, with Isla, former Inditex chief, proposed as his successor.
Freixe’s dismissal mirrors other high-profile exits linked to personal relationships. BP chief Bernard Looney quit last year after admitting he had not been “fully transparent” about past relationships. In 2019, McDonald’s sacked its CEO Steve Easterbrook after discovering he had a consensual relationship with an employee. A later probe revealed three more relationships.
According to the BBC, the issue first emerged when a report was filed through Nestlé’s whistleblowing hotline earlier this year. An initial internal investigation dismissed the claims as unsubstantiated, but the concerns did not stop there. As the complaints continued, Nestlé opened a second probe, this time with external counsel. That inquiry confirmed the relationship and concluded it posed a conflict of interest.
A company spokesperson told Reuters that Freixe had initially denied the relationship to the board.
Nestlé’s official statement
The investigation was led by Nestlé Chairman Paul Bulcke and Lead Independent Director Pablo Isla.
“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,” the company said in its statement.
Bulcke added, “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.”
Nestlé later clarified that it had acted “at all times in line with best practice corporate governance” and that “today's decision shows that we are taking allegations and investigations seriously.”
Who was involved?
The identity of the subordinate has not been disclosed. The BBC reported that the individual was not a member of the executive board.
The Financial Times noted that the matter was first raised earlier this year. Only after the second, externally supported inquiry were the claims upheld.
Who is Laurent Freixe?
Freixe, 63, had been with Nestlé for nearly four decades. He started his career in France in 1986, first in sales and marketing, and later took charge of the Nutrition Division. He went on to lead Nestlé Hungary, the Iberian region, and Zone Europe, before moving to Zone Americas in 2014. In 2022, after a restructuring, he was placed in charge of Zone Latin America.
He became global CEO on 1 September 2024, replacing Ulf Mark Schneider. His tenure ended exactly one year later.
Nestlé had once described Freixe as a “natural leader” who was instrumental in driving performance and innovation. Among his signature initiatives was the “Nestlé Needs YOUth” programme, launched in 2013 to provide opportunities for young workers worldwide.
No golden goodbye
Freixe will not receive any exit package, the company confirmed. His predecessor earned around 9.6 million Swiss francs (£8.7 million) annually, and Freixe was expected to have received a similar salary.
According to Nestlé’s 2024 compensation report, he also held more than 41,000 shares in the company, valued at about 3.6 million US dollars.
Who is Philipp Navratil, the new CEO
Philipp Navratil has been named as the new CEO with immediate effect. Navratil joined Nestlé in 2001 as an internal auditor and went on to hold senior roles across Central America and Mexico. From 2013 to 2020, he led the coffee division in Mexico. More recently, he oversaw the global strategy for brands such as Nescafé and Starbucks before being appointed head of Nespresso in 2024.
In January 2025, he joined the executive board. Upon taking the top role, Navratil said, “I fully embrace the company’s strategic direction, as well as the action plan in place to drive Nestlé’s performance. I will drive the value creation plan with intensity.”
Bulcke stressed that Nestlé was “not changing course on strategy and we will not lose pace on performance.”
The sacking of a CEO at Nestlé is rare. The company, founded in 1866, has faced a challenging year. In July, French regulators raided its offices over alleged unauthorised filtration methods in bottled water. Earlier, Nestlé had to recall frozen meals in the US due to contamination concerns. Rising coffee and cocoa costs have also weighed heavily, although the company offset much of the impact through price increases.
The leadership shake-up also comes as Bulcke prepares to step down as chairman next year, with Isla, former Inditex chief, proposed as his successor.
Freixe’s dismissal mirrors other high-profile exits linked to personal relationships. BP chief Bernard Looney quit last year after admitting he had not been “fully transparent” about past relationships. In 2019, McDonald’s sacked its CEO Steve Easterbrook after discovering he had a consensual relationship with an employee. A later probe revealed three more relationships.
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