Nestlé dismisses CEO over relationship with subordinate

Nestlé, the Swiss multinational conglomerate and the world’s largest food company, has dismissed its CEO, Laurent Freixe, over an undisclosed relationship with a subordinate, a breach of the company’s code of conduct.

Freixe will be replaced by a longtime Nestlé executive, Philipp Navratil, the company said in a news release Monday.

Nestlé said that Freixe’s dismissal followed an investigation into a romantic relationship he had with a direct subordinate.

The investigation was overseen by the company’s chair, Paul Bulcke, and lead independent director, Pablo Isla, and included outside counsel.

“This was a necessary decision,” Bulcke said in a statement. “Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service at Nestlé.”

Navratil, who replaces Freixe effective immediately, was previously senior vice president and head of the company’s Coffee Strategic Business Unit, overseeing global strategy for the Nescafé and Starbucks brands. He began his career at Nestlé as an internal auditor in 2001, and was named country manager for Nestlé Honduras in 2009.

In 2013, he took control of the company’s coffee and beverage business in Mexico. Last year, he was named CEO of Nestlé Nespresso, and he joined Nestlé’s executive board this year.

“I fully embrace the company’s strategic direction, as well as the action plan in place to drive Nestlé’s performance,” Navratil said in a statement.

When Freixe was named CEO less than a year ago, Nestlé’s stock had dropped nearly 40% from its high in early 2022, as a new breed of weight-loss drugs began to shift eating habits across Europe and the United States. After spending nearly four decades at the company, he was tapped to replace longtime CEO Mark Schneider, who was one of only two Nestlé CEOs hired from outside the company.

This article originally appeared in The New York Times.