Overview:
Nestlé has immediately dismissed CEO Laurent Freixe following confirmation of an undisclosed romantic relationship with a subordinate, violating company policy. Veteran executive Philipp Navratil, head of Nespresso, takes over as CEO. The leadership shake-up underscores Nestlé's commitment to values amid ongoing business challenges, including falling sales and regulatory pressures.
A Departure Amid Controversy
- Nestlé has dismissed CEO Laurent Freixe effective immediately after an internal and external investigation confirmed an undisclosed romantic relationship with a direct subordinate—a violation of the company’s code of conduct.
- This announcement comes less than a year into Freixe’s tenure as CEO, which began in September 2024.
Governance and Succession
- The investigation was triggered via Nestlé’s “Speak Up” system. A second probe with external counsel confirmed the violation after initial findings were inconclusive.
- Philipp Navratil, head of Nespresso and a Nestlé veteran since 2001, has been appointed the new CEO.
- Chairman Paul Bulcke emphasized the move as necessary to uphold Nestlé’s governance values.
Business Implications
- Freixe had delivered a more cautious growth strategy but faced mounting pressure: first-half sales slowed, and shares tumbled amid tariff challenges and operational complexity.
- Navratil’s appointment is intended to maintain strategic continuity and execution amid a turbulent environment.
Legacy and Background
- Freixe’s journey with Nestlé began in 1986 across roles in Europe and Latin America. He became CEO in 2024, after leading Zone Latin America and serving on the Executive Board.
What’s Next for Nestlé
- Analysts are closely watching investor confidence and the restaurant of strategic execution. Navratil’s ability to steer the company through complexity and uphold brand performance will be critical.
Sources
- AP News – Dismissal details and governance rationale (AP News)
- Reuters – Code-of-conduct breach and CEO change report (Reuters)
- Financial Times – Investigation depth and company background (Financial Times)
- Economic Times – Profile of incoming CEO Philipp Navratil (The Economic Times)
- Hindustan Times – Career overview of Freixe and timeline (Hindustan Times)
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