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In a stunning corporate shake-up, Nestlé’s Board has abruptly dismissed its Nestle CEO Laurent Freixe, after an internal probe confirmed he engaged in an undisclosed romantic relationship with a direct subordinate, breaching the company’s strict Code of Business Conduct.

The move marks one of the most dramatic leadership upheavals in the company’s history and underscores the food giant’s zero-tolerance stance on governance violations, even at the highest level.

🔎 Why Nestle CEO Laurent Freixe ousted

Nestle CEO Laurent Freixe’s dismissal comes exactly one year after his promotion to CEO, following nearly four decades of service at Nestlé. The investigation was triggered by a report filed through Nestlé’s whistleblower channel and overseen by Chairman Paul Bulcke and Lead Independent Director Pablo Isla, with guidance from independent external counsel.

The board concluded that Freixe’s failure to disclose the relationship constituted a serious policy breach and created the risk of a conflict of interest.

Bulcke was unequivocal:

“This was a necessary decision. Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service.”

Notably, Nestle CEO Laurent Freixe departs without an exit package, reflecting the gravity of the violation.

👤 The New CEO: Philipp Navratil

Nestlé moved quickly to appoint Philipp Navratil as its new CEO, signalling stability amid the leadership crisis.

Navratil, who joined Nestlé in 2001, has steadily risen through the ranks. He has served across Central America, led coffee and beverage operations in Mexico, and spearheaded global innovation for Nescafé and Starbucks coffee brands. Most recently, as head of Nespresso, he drove growth and innovation, earning praise for inclusive leadership.

In his first statement as CEO, Navratil said he was “honoured by the Board’s trust” and pledged to stay the course strategically while accelerating value creation for consumers and shareholders.

📜 Background on Laurent Freixe

Nestle CEO Laurent Freixe’s exit ends a storied but now controversial career. Since joining Nestlé France in 1986, he climbed through leadership posts in Europe, Hungary, and the Americas before joining the Executive Board in 2008. He became known for his innovative initiatives and the global youth employment program Nestlé Needs YOUth, which aims to help millions of young people secure jobs by 2030.

Yet, his failure to uphold the very governance standards he once championed now overshadows his legacy.

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🌍 Broader Implications

Nestle CEO Laurent Freixe’s dismissal is part of a growing global trend: top executives facing accountability for personal misconduct. From Wall Street to Silicon Valley, boards are under mounting pressure to hold CEOs to the same standards applied across organisations.

Analysts say Nestlé’s rapid and transparent response not only protects its reputation but also strengthens its image as a corporation committed to governance, ethics, and accountability.

As Navratil assumes leadership, Nestlé faces a future defined by evolving consumer habits, volatile commodity markets, and tighter regulations. The board’s actions send a strong message: governance and trust are non-negotiable.

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