Nestlé CEO Fired After Undisclosed Relationship with Subordinate

Nestlé has appointed Philipp Navratil as its new CEO after the Swiss food company dismissed Laurent Freixe due to an undisclosed romantic relationship with an employee. An internal investigation revealed that Laurent Freixe was involved in a hidden relationship with a direct subordinate, according to a statement released on Monday. The probe was conducted by board chairman Paul Bulcke and lead independent director Pablo Isla, with the support of independent external legal counsel. ‘This was a necessary decision. Nestlé’s values and governance are solid foundations of our company. I thank Laurent for his years of service,’ Bulcke said, according to the statement. The abrupt change adds to turbulence in Nestlé’s leadership. Freixe took over after the surprising ousting of Mark Schneider, who was fired due to poor performance during his nearly eight-year tenure. Freixe’s strategy aimed to reignite growth and capture consumers by increasing advertising investments and focusing on fewer, larger product initiatives. He also began a strategic review of underperforming vitamin brands and separated Nestlé’s water division, turning it into an independent unit. Philipp Navratil, a company veteran with over 20 years of experience, joined the executive board earlier this year and had been serving as CEO of Nestlé’s Nespresso. Previously, he was Senior Vice President and Head of the Coffee Strategic Business Unit, overseeing the global strategy of the Nescafé brand and the licensing partnership with Starbucks. ‘I fully embrace the company’s strategic direction, as well as the action plan set forth to drive Nestlé’s performance,’ he said, according to Monday’s statement. The CEO’s romantic entanglement comes just over a month after a viral incident: another CEO, this one of a software solutions company, was caught by the ‘kiss cam’ at a Coldplay show in the US with the company’s HR chief. The incident took place in July.