In a dramatic shake-up at the helm of one of the world’s largest food and beverage companies, Nestlé has dismissed its Chief Executive Officer Laurent Freixe with immediate effect following an internal investigation that revealed an “undisclosed romantic relationship” with a direct subordinate. The Swiss multinational confirmed the decision on September 1, 2025, stating that Freixe’s conduct violated the company’s Code of Business Conduct and governance standards.
The dismissal was overseen by Nestlé Chairman Paul Bulcke and Lead Independent Director Pablo Isla, with support from external counsel. The board described the move as “necessary,” reinforcing the company’s commitment to ethical leadership and transparency. Philipp Navratil, a long-serving Nestlé executive and former head of Nespresso, has been appointed as the new CEO.
🧭 Timeline of Events Leading to Freixe’s Dismissal
| Date | Event / Development | Outcome / Impact |
|---|---|---|
| Sept 2024 | Laurent Freixe appointed CEO of Nestlé | Succeeds Mark Schneider |
| Early 2025 | Whistleblower complaint filed internally | Initial probe launched |
| July 2025 | Second investigation initiated with external counsel | Allegations substantiated |
| Sept 1, 2025 | Freixe dismissed by Nestlé board | Philipp Navratil appointed CEO |
The relationship, which was not disclosed to the board or HR, was deemed a conflict of interest and a breach of Nestlé’s internal ethics policies.
🔍 Who Is Laurent Freixe?
Laurent Freixe, 63, is a Paris-born executive who spent nearly four decades at Nestlé. He joined the company in 1986 and rose through the ranks, holding senior roles across Europe, Latin America, and the Americas. He was credited with launching the “Nestlé Needs YOUth” initiative in 2013, aimed at creating employment opportunities for young people globally.
| Career Milestone | Role / Region | Year / Duration |
|---|---|---|
| Joined Nestlé France | Marketing and Sales | 1986 |
| Head of Nutrition Division | Nestlé France | 1999 |
| CEO of Nestlé Hungary | Eastern Europe | 2003 |
| CEO of Iberian Region | Spain and Portugal | 2007 |
| EVP, Zone Europe | Executive Board Member | 2008–2014 |
| CEO, Zone Americas | North and South America | 2014–2022 |
| CEO, Zone Latin America | Post-geographic reshuffle | 2022–2024 |
| CEO of Nestlé S.A. | Global Role | Sept 2024–Sept 2025 |
Freixe’s tenure as CEO lasted exactly one year, ending abruptly amid the ethics investigation.
📉 Nestlé’s Governance Standards and Board Response
Nestlé’s Code of Business Conduct explicitly prohibits undisclosed relationships that could create conflicts of interest or compromise professional integrity. The board emphasized that the decision to dismiss Freixe was not based on the relationship itself, but on the failure to disclose it.
| Governance Principle | Nestlé Policy | Breach Identified |
|---|---|---|
| Conflict of Interest | Must be disclosed to HR and board | Relationship undisclosed |
| Transparency | Mandatory for senior executives | Violation confirmed |
| Ethical Leadership | Zero tolerance for governance breaches | Board acted swiftly |
| External Oversight | Independent counsel involved | Ensured impartiality |
Chairman Paul Bulcke stated, “This was a necessary decision. Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service.”
🔥 Who Is Philipp Navratil?
Philipp Navratil, Nestlé’s newly appointed CEO, is a company veteran with over two decades of experience. He previously led the Coffee Strategic Business Unit and served as CEO of Nespresso. Known for his strategic acumen and operational expertise, Navratil is expected to bring stability and continuity to Nestlé’s leadership.
| Career Highlights | Role / Region | Duration / Impact |
|---|---|---|
| Joined Nestlé | Internal Auditor | 2001 |
| Coffee & Beverage Head | Mexico | 2013–2020 |
| Global Strategy Lead | Nescafé and Starbucks | 2020–2024 |
| CEO of Nespresso | Global Brand | July 2024–Aug 2025 |
| CEO of Nestlé S.A. | Global Role | Sept 2025–Present |
Navratil has pledged to “drive the value creation plan with intensity” and maintain Nestlé’s strategic direction.
🧠 Industry Reactions and Ethical Debate
| Expert Name | Role | Comment |
|---|---|---|
| Meera Iyer | Corporate Governance Analyst | “Nestlé’s swift action reinforces its ethical brand.” |
| Rajiv Bansal | HR Consultant | “Disclosure is key—especially at the top.” |
| Dr. Rakesh Sinha | Business Ethics Professor | “This sets a precedent for global corporations.” |
The dismissal has reignited discussions around workplace relationships, transparency, and executive accountability.
📦 Nestlé’s Performance and Strategic Outlook
Despite the leadership shake-up, Nestlé’s board insists that its strategic priorities remain unchanged. The company is focused on portfolio restructuring, digital transformation, and sustainability.
| Strategic Focus Area | Current Status | CEO Navratil’s Role |
|---|---|---|
| Portfolio Restructuring | Underway | Accelerate divestments and acquisitions |
| Digital Transformation | AI and data-led innovation | Expand tech capabilities |
| Sustainability Goals | Net-zero by 2050 | Strengthen ESG reporting |
| Market Expansion | Asia and Latin America | Drive regional growth |
Nestlé’s share price closed slightly higher at 75.49 Swiss francs following the announcement, signaling investor confidence in the transition.
📌 Conclusion
The dismissal of Laurent Freixe as Nestlé’s CEO over an undisclosed romantic relationship with a subordinate marks a pivotal moment in corporate governance. As global companies face increasing scrutiny over ethical conduct, Nestlé’s decisive action reinforces its commitment to transparency and integrity. With Philipp Navratil stepping in as CEO, the company aims to maintain strategic momentum while upholding the values that define its global reputation.
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Disclaimer: This article is based on publicly available news reports and corporate statements as of September 2, 2025. It is intended for informational purposes only and does not constitute legal, financial, or HR advice.
