Nestlé CEO Fired for “Romantic Relationship”

4 days ago

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Unexpected Leadership Change Rocks Nestlé

Nestlé has dismissed Chief Executive Officer Laurent Freixe after an internal investigation confirmed he was involved in an undisclosed romantic relationship with a direct subordinate—violating the company’s strict Code of Business Conduct. The probe was led by Chairman Paul Bulcke and Lead Independent Director Pablo Isla, with assistance from external counsel, underscoring the gravity of the breach.

This marks the second abrupt CEO change in just over a year—Freixe took over in September 2024, succeeding Mark Schneider. His removal has triggered heightened investor unease, with Nestlé shares dropping as much as 17% during his short tenure. Concerns about strategic continuity and leadership stability now loom large.

Meet the Replacement: Nestlé’s New CEO, Philipp Navratil

Stepping into the role immediately is Philipp Navratil, a Nestlé veteran who joined the company in 2001 as an internal auditor. Over his 24-year tenure, Navratil has held key positions—including leadership of the Nespresso brand, regional roles in Latin America and Central America, and senior roles in global strategy for Nescafé and the company’s Starbucks licensing.

The Board expressed confidence in Navratil’s ability to steer Nestlé forward. In its announcement, the board emphasized that strategic direction remains unchanged and that the new CEO is well-positioned to maintain performance amid ownership transitions and market pressures.

Governance, Strategy, and Investor Sentiment in Focus

This leadership shake-up isn’t just about one individual—it’s a signal that corporate culture and governance policies are non-negotiable at Nestlé. As the company grapples with sluggish growth, falling profits (a 10% drop in H1), and stiff competition—most notably an $18 billion Keurig Dr Pepper–JDE Peet’s merger in its core coffee segment—investors are watching closely.

JP Morgan analysts warned that frequent executive turnover at the top may increase uncertainty around Nestlé’s mid-term direction. With Chairman Bulcke also planning to step down next year, observers say Nestlé is entering an unprecedented period of managerial transition—making the need for steady, transparent leadership all the more essential.