Nestle CEO Dismissed Over Undisclosed Romantic Relationship With Subordinate
Board: "A Measure to Protect Corporate Value and Governance"
Nestle, the world’s largest food company headquartered in Switzerland, has abruptly dismissed CEO Laurent Freixe after just one year, citing an undisclosed romantic relationship with a direct subordinate.
On September 1 (local time), Nestle announced in a press release that its board of directors had immediately dismissed CEO Freixe and appointed Philipp Navratil, who oversees the Nespresso coffee brand, as the new chief executive.
Nestle added, “Freixe’s resignation followed an investigation into his undisclosed romantic relationship with a direct subordinate, which violated the company’s code of conduct.” The board explained that this decision was an unavoidable measure to protect corporate value and governance.
Freixe became CEO in September last year, taking over from former CEO Mark Schneider, who was abruptly dismissed due to poor performance. Schneider, who came from another company, served as CEO for about eight years but ultimately stepped down due to unsatisfactory management results.
Freixe was appointed as his successor and was considered a stable leader capable of restoring the company’s traditional strengths. He had worked at Nestle since 1986 and was recognized at headquarters in 2008 for his ability to manage the global financial crisis. He was also credited with successfully managing Nestle’s businesses in Europe and the Americas for over a decade.
Nestle has named Navratil as Freixe’s successor. The board had previously considered Navratil as a potential successor, and, according to The Wall Street Journal (WSJ), decided to promote him following the findings of the recent investigation.
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WSJ also reported that some analysts criticized Nestle for promoting an internal candidate and maintaining the status quo, despite the company’s lackluster performance.
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