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Nestlé SA (NESN.S) has removed Chief Executive Officer Laurent Freixe after an internal investigation concluded he violated the company's code of business conduct, the Swiss food and beverage giant said on Monday.
The probe, overseen by Chairman Paul Bulcke and Lead Independent Director Pablo Isla, found that Freixe engaged in an undisclosed romantic relationship with a direct subordinate, contravening Nestlé's workplace ethics policies.
"This was a necessary decision," Bulcke said in a statement. "Nestlé's values and governance remain the strong foundations of our company. I thank Laurent for his decades of service."
Freixe, a company veteran who assumed the top role in September last year after the departure of Mark Schneider, leaves the position less than a year into his tenure. His dismissal marks a sudden leadership change at one of the world's largest consumer goods groups.
Nestlé said Philipp Navratil, who joined the executive board in January, will take over as CEO effective immediately. Navratil began his career with Nestlé in 2001 as an internal auditor before moving into commercial roles in Central America. In 2009, he became country manager for Honduras, later leading the coffee and beverages division in Mexico.
He went on to head Nestlé's global coffee business unit in 2020, before shifting to Nespresso in mid-2024. His rapid rise to the executive board earlier this year paved the way for Monday's appointment.
Freixe's exit underscores Nestlé's strict adherence to governance rules, at a time when global corporations face increasing scrutiny over workplace ethics. Analysts said the swift action highlights the board's commitment to transparency and accountability.
"This is a pivotal transition, but Nestlé's deep leadership bench ensures stability," one Zurich-based analyst told Reuters.
