02
Sep
Sep
NESTLE SACKS CEO LAURENT FREIXE OVER ROMANTIC RELATIONSHIP WITH SUBORDINATE
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CapitalTimesNews / 5 months
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- 2 min read
Nestle has abruptly dismissed its Chief Executive Officer (CEO), Laurent Freixe, for failing to disclose a romantic relationship with a subordinate. The company announced that veteran insider Philipp Navratil, who had headed the Nespresso coffee unit, would succeed Freixe as CEO with immediate effect. The decision follows an investigation overseen by Chairman Paul Bulcke and Lead Independent Director Pablo Isla into the undisclosed romantic relationship, which breached the company’s code of business conduct. “This was a necessary decision. Nestle’s values and governance are strong foundations of our company. I thank Laurent for his years of service,” Bulcke said in a statement. Concerns about a possible relationship between Freixe and a direct report first emerged in the spring through an internal company hotline. Although the initial investigation was inconclusive, a second probe, overseen by Bulcke and Isla and with the help of an external firm, confirmed the relationship. It was revealed that Freixe had initially denied the relationship to the board. The shock departure threatens more volatility for Nestle amid a tough consumer environment and the disruptive United States trade tariffs. Bulcke’s decision to step down as chairman next year had been announced earlier this year. The company has appointed Navratil to lead the company forward, effective immediately.