Nestlé CEO dismissed due to romantic relationship with subordinate.

Nestlé, the renowned Swiss multinational food and beverage corporation, announced the termination of its CEO, Laurent Freixe, due to an undisclosed romantic relationship with a direct subordinate. The decision, confirmed on Monday, follows an internal investigation that scrutinized Freixe’s conduct within the company.

Philipp Navratil, who has been with Nestlé since 2001 and previously headed the Nespresso division, has been designated as Freixe’s successor. Navratil’s career at Nestlé began as an internal auditor, and he steadily ascended the corporate ladder, earning a place on the executive board in early 2025.

Nestlé’s chairman, Paul Bulcke, described the dismissal as a necessary action that underscores the company’s commitment to its core values and governance standards. In his statement, he acknowledged Freixe’s contributions during his tenure and reflected on the importance of maintaining a professional environment within the organization.

Laurent Freixe held the position of CEO for a brief period of 365 days, taking office on September 1, 2024, after succeeding Mark Schneider. Having been with Nestlé since 1986, Freixe previously led the company’s operations in Latin America before his promotion to CEO. His departure comes amid a growing focus on corporate governance and workplace ethics, as companies increasingly prioritize transparency and accountability at all levels.

Despite the internal investigation earlier this year revealing no immediate wrongdoing, the relationship raised concerns regarding power dynamics and workplace policies. Such governance challenges are not unique to Nestlé, reflecting broader trends within multinational corporations striving to navigate complex ethical landscapes.

In his initial remarks following the announcement of his promotion, Navratil expressed his gratitude for the trust placed in him by the board. He indicated his readiness to lead Nestlé while embracing the company’s strategic initiatives aimed at enhancing performance and sustaining growth.

The swift decision to terminate Freixe underscores Nestlé’s ongoing commitment to its ethical standards and the importance it places on governance, especially at the executive level. The company now looks forward to a new era of leadership under Navratil, as it seeks to reaffirm its position as a leader in the global food and beverage industry while addressing the challenges of modern corporate governance.

As Nestlé transitions to new leadership, it remains to be seen how this change will impact its operational strategies and corporate culture moving forward.