Switzerland — Nestlé has dismissed its chief executive, Laurent Freix, after just one year in the role, citing his failure to disclose a romantic relationship with a direct subordinate, the Swiss food giant confirmed on Monday.
The maker of Kit Kat chocolates and Nespresso coffee capsules announced that Freixe’s departure was effective immediately after an internal investigation overseen by chairman Paul Bulcke and independent director Pablo Isla, supported by outside counsel.
Nestlé stated that the matter came to light through its whistleblowing channel and involved an employee who was not a member of the executive board. The company deemed the relationship a conflict of interest, triggering the swift inquiry and eventual decision to terminate Freixe.
Bulcke described the move as “a necessary decision” and emphasized that Nestle’s values and governance “remain strong foundations of our company.” He also thanked Freixe for nearly four decades of service.
Philipp Navratil, who joined Nestlé in 2001 and has risen through senior leadership roles, has been appointed as Freixe’s successor. The company stressed it will not deviate from its current strategy and vowed not to lose pace in performance.
Nestlé confirmed that Freixe will not receive any form of exit package, in sharp contrast to some other corporate scandals. In recent years, several high-profile chief executives have been forced out over relationships with subordinates.
In 2019, McDonald’s ousted Steve Easterbrook after revelations of a consensual relationship with an employee. Though he initially walked away with $105 million in severance, further investigation uncovered multiple relationships, resulting in him returning the package and later paying a $400,000 fine to US regulators. BP also faced upheaval when Bernard Looney resigned in 2023 after failing to fully disclose his relationships with colleagues.
Nestle, one of the world’s largest consumer goods companies, has moved quickly to contain reputational fallout, underscoring how corporate boards across Europe and beyond are increasingly drawing hard lines on issues of executive transparency and workplace ethics. According to the BBC, the probe into Freixe’s conduct was initiated by a whistleblower and concluded with his dismissal without severance benefits.
