Nestlé Fires CEO Laurent Freixe Over Undisclosed Romance With Employee
In a dramatic shake-up at one of the world’s biggest food companies, Nestlé has abruptly fired its chief executive, Laurent Freixe, after just one year in the role. The Swiss multinational, best known for household favorites like KitKat chocolate bars and Nespresso coffee, said the dismissal came after Freixe failed to disclose a romantic relationship with a direct subordinate — a move the company said violated its governance standards.
The announcement sent shockwaves through the business world, not just because of the speed and severity of the decision, but also because Freixe had been with Nestlé for nearly four decades. He rose through the ranks before taking over the top job in September last year, succeeding Mark Schneider.
Whistleblower Report Sparked Investigation
The controversy began when a report was filed through Nestlé’s internal whistleblowing channel. According to the company, the claim was serious enough to warrant an internal investigation led by Chair Paul Bulcke and lead independent director Pablo Isla, with support from external legal counsel.
While an earlier probe into the same allegations had reportedly cleared Freixe, continued complaints prompted Nestlé to revisit the matter. This time, the external investigation confirmed the claims.
Bulcke was blunt in his statement:
“This was a necessary decision. Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service.”
No Exit Package for Freixe
The company confirmed that Freixe will not receive any severance or exit package — a significant move in an era where golden parachutes for departing executives are often the norm, even in cases of scandal.
Philipp Navratil, a Nestlé veteran who joined the company in 2001, has been named as Freixe’s successor. Bulcke assured stakeholders that despite the leadership shake-up, Nestlé is “not changing course on strategy and will not lose pace on performance.”
Part of a Larger Corporate Trend
Freixe’s firing highlights a growing trend of companies cracking down on undisclosed workplace relationships involving top executives.
- BP’s Bernard Looney resigned in 2023 after admitting he wasn’t fully transparent about past relationships with colleagues.
- McDonald’s Steve Easterbrook was ousted in 2019 after it emerged he had multiple relationships with employees. Initially given a massive $105 million severance, he later returned the money and faced a $400,000 fine from U.S. regulators for misleading investors.
These high-profile cases underline how companies are increasingly treating workplace relationships — particularly undisclosed ones involving executives — as serious governance issues.
A Legacy Overshadowed
For Freixe, the dismissal marks an abrupt and painful end to a nearly 40-year career at Nestlé. While he helped steer the company through decades of growth, his legacy now risks being overshadowed by the scandal.
Nestlé, meanwhile, is preparing for broader changes at the top. Chair Paul Bulcke is set to step down next year, with Pablo Isla — the former Inditex (Zara) boss who co-led the investigation — proposed as his replacement.
As the dust settles, one thing is clear: Nestlé has drawn a firm line on governance and transparency, showing no executive is above company rules.
