Nestlé has dismissed its Chief Executive Officer, Laurent Freixe, following an internal investigation into an undisclosed romantic relationship with a direct subordinate. The investigation concluded that Freixe's conduct violated the company's code of business conduct. The Swiss multinational announced the decision on Monday, stating that the dismissal was effective immediately.

Philipp Navratil, formerly the head of Nestlé's Nespresso coffee unit, has been appointed as Freixe's successor. Navratil joined Nestlé in 2001 as an internal auditor and has since held various commercial roles, including country manager for Nestlé Honduras and leader of the coffee and beverage business in Mexico. He transitioned to Nestlé's coffee strategic business division in 2020 and moved to Nespresso in July 2024. Navratil joined Nestlé's executive board on January 1, 2025.

According to Reuters, concerns about a possible relationship between Freixe and a direct report first emerged in the spring through an internal company hotline. A company spokesperson added that Freixe initially denied the relationship to the board. The board of directors immediately opened an investigation into the matter, which was however inconclusive. As the concerns persisted, the company launched a second probe, overseen by Chairman Paul Bulcke and Lead Independent Director Pablo Isla and with the help of an external firm, which confirmed the relationship.

Nestlé Chairman Paul Bulcke stated that the decision was necessary to uphold the company's values and governance. He thanked Freixe for his years of service. Bulcke, who is set to step down as chairman next year, expressed confidence in Navratil's ability to drive growth plans forward and accelerate efficiency efforts. He noted Navratil's impressive track record, dynamic presence, and collaborative management style.

Freixe's departure comes almost exactly a year after he assumed the CEO role in September 2024, succeeding Mark Schneider. Freixe joined Nestlé in France in 1986 and held various positions, including head of Nestlé France's Nutrition Division, CEO of Nestlé Hungary, and CEO of Nestlé Russia. He ran the firm's European operations until 2014 and headed the Latin America division before becoming CEO.

Nestlé has confirmed that Freixe will not receive an exit package.

Navratil stated that he fully embraces the company's strategic direction and action plan and looks forward to working with the leadership team to drive the value creation plan.

The investigation into Freixe's conduct was overseen by Chairman Paul Bulcke and Lead Independent Director Pablo Isla, with the support of outside counsel. The company stated that it acted in line with best practice corporate governance and took the allegations and investigations seriously.

This incident is not isolated, as several other top business figures have recently faced consequences for similar violations of internal rules regarding relationships with colleagues.