Swiss food and drink giant Nestlé has sacked its chief executive officer Laurent Freixe “with immediate effect” because he failed to disclose a romantic affair with a direct subordinate.
The company, which includes KitKat chocolate bars and Nespresso coffee among its brands, said in a statement that it had appointed Philipp Navratil, who has been with Nestlé since 2001, as Freixe’s successor.
Relationships at work
Coldplay couple: why should they lose their jobs?
ITV to require staff to declare all relationships with colleagues
“The departure of Laurent Freixe follows an investigation into an undisclosed romantic relationship with a direct subordinate which breached Nestlé’s Code of Business Conduct,” said Nestlé.
“In line with best practice corporate governance, the board ordered an investigation overseen by chairman Paul Bulcke and lead independent director, Pablo Isla, with the support of independent outside counsel.”
Bulcke said: “This was a necessary decision. Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service at Nestlé.”
It is understood the employee Freixe was having an affair with was not on the executive board and the investigation began because it represented a conflict of interest.
Navratil has held various commercial roles in Central America, including being country manager, and leading the coffee and beverage business in Mexico.
In 2020, he moved to Nestlé’s Coffee Strategic Business Unit before moving to Nespresso in July 2024 and joining the executive board at the beginning of this year.
He said: “It is a privilege to take on the responsibility of leading Nestlé into the future. I fully embrace the company’s strategic direction, as well as the action plan in place to drive Nestlé’s performance.”
Reuters reported that Freixe’s relationship with his colleague was first disclosed to an internal company hotline earlier this year, but that a subsequent initial investigation, launched by the board, was inconclusive.
Nestlé told news service that Freixe will not receive an exit package.
In 2023, oil giant BP found its former chief executive Bernard Looney committed serious misconduct by failing to disclose relationships with colleagues. Looney was dismissed without notice and did not receive further salary or benefits, which would have amounted up to £32.4 million.
Sign up to our weekly round-up of HR news and guidance
Receive the Personnel Today Direct e-newsletter every Wednesday
HR opportunities in the FMCG sector on Personnel Today
Browse more HR opportunities in the FMCG sector
