Nestle sacks CEO over 'romantic relationship' with employee
What's the story
Swiss food giant Nestle has announced the dismissal of its CEO, Laurent Freixe, over a breach of conduct. The company said Freixe's termination was effective immediately after an investigation led by Chairman Paul Bulcke and Lead Independent Director Pablo Isla. The probe found that he had failed to disclose a "romantic relationship" with a "direct subordinate," which breached the company's code of business conduct.
Leadership transition
Philipp Navratil appointed as new CEO
Following Freixe's dismissal, Nestle has appointed Philipp Navratil as the new CEO. Navratil, a company veteran who previously headed the Nespresso coffee unit, will take over immediately. The decision comes amid a challenging consumer environment and US trade tariffs.
Whistleblower alert
Investigation launched after whistleblower report
The investigation into Freixe was launched after a report was submitted via Nestle's whistleblowing channel. The inquiry found that the relationship in question involved an employee who wasn't part of the executive board and represented a conflict of interest. A Nestle spokesperson said, "We acted at all times in line with best practice corporate governance." "Today's decision shows that we are taking allegations and investigations seriously," the spokesperson added.
Tenure details
Freixe won't receive exit package
Freixe had been with Nestle for 40 years, having taken over as CEO in September last year. The company has confirmed that he will not be receiving an exit package following his dismissal. The conduct of top management has come under scrutiny in recent months, especially after Astronomer CEO Andy Byron resigned in July after being filmed embracing his colleague at a Coldplay concert.