Nestlé Fires CEO Laurent Freixe for Failing to Disclose Relationship with Subordinate

Nestlé said it had dismissed chief executive Laurent Freixe with immediate effect after an internal investigation found he failed to disclose a romantic relationship with a direct subordinate.

The Swiss food and beverage group, whose brands include KitKat, Nespresso, Purina and Perrier, said the board’s inquiry determined the relationship represented a conflict of interest and violated the company’s code of conduct. The investigation was led by Nestlé chair Paul Bulcke and lead independent director Pablo Isla with support from independent outside counsel.

Bulcke said in a statement that "this was a necessary decision" and that "Nestlé's values and governance form the solid foundation of our company." The company confirmed the employee involved is not a member of the executive board. The BBC reported the inquiry was triggered by a report made through the company’s whistleblowing channel.

Nestlé said Freixe, 63, who joined the company in 1986 and rose through senior roles in Europe and Latin America, will receive no exit package. He became CEO less than a year ago after succeeding Mark Schneider.

Philipp Navratil, 48, who has led Nestlé’s Nespresso unit and has spent 24 years at the company, was appointed chief executive effective immediately, the company said. Navratil’s elevation is intended to ensure continuity of operations while the board addresses governance matters raised by the inquiry.

The Financial Times reported that concerns about Freixe’s relationship with an employee were raised earlier this year and that the internal review followed those concerns. Nestlé did not provide further details about the relationship or make public the findings of the investigation beyond saying the conduct violated company rules.

Nestlé’s announcement came as an abrupt change in leadership for the world’s largest food company. Corporate codes of conduct at major multinationals frequently require disclosure of personal relationships that could affect professional decision-making or create perceptions of favoritism, and companies often investigate such matters when concerns are raised through compliance or whistleblower channels.

The company’s board emphasized its governance processes in the statement announcing the dismissal. "I thank Laurent for his years of service at Nestlé," Bulcke added, while noting the firm’s commitment to its values.

Analysts said the immediate appointment of an internal successor is aimed at limiting disruption to operations and investor confidence. Nestlé will continue to face scrutiny over the circumstances of the leadership change, and the board may provide further details as it completes any remaining inquiries or governance reviews.

The company did not disclose whether it will reopen a search for other senior leaders or make further changes to its governance or disclosure policies. Nestlé said it remains focused on its long-term strategy and operations while the board manages the transition in its executive leadership.