Nestlé Dismisses CEO Laurent Freixe After Code of Conduct Breach

Vevey, Switzerland - In a stunning leadership shake-up announced Tuesday, Swiss food and beverage giant Nestlé abruptly terminated its Chief Executive Officer Laurent Freixe after an internal investigation found he failed to disclose a romantic relationship with a direct subordinate, in violation of the company’s Code of Business Conduct. Freixe’s dismissal, effective immediately, comes exactly one year after he assumed the top role and marks the second CEO ouster at Nestlé within twelve months.

Philipp Navratil, 49, who has led Nestlé’s Nespresso coffee division since July 2024 and joined the executive board in January, has been appointed Freixe’s successor. As a long-time Nestlé veteran with more than two decades of service-including leadership roles in Central America and senior positions within the Coffee Strategic Business Unit-Navratil is seen as a stabilizing choice amid ongoing market turbulence.

Chairman Paul Bulcke, who oversaw the probe alongside Lead Independent Director Pablo Isla, emphasized the necessity of the decision: “This was a necessary decision. Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service”.

The abrupt departure has unsettled investors, with Nestlé shares falling 1% in early trading on Tuesday as markets grapple with the implications of yet another sudden leadership change. Analysts warn that the swift CEO transitions-following Mark Schneider’s exit in August 2024-could prolong uncertainty over Nestlé’s mid-term strategic direction and performance targets.

Freixe, a Nestlé lifer since 1986, will not receive a severance package, the company confirmed. Despite this upheaval, Bulcke insisted that Nestlé will maintain its existing strategy and performance objectives, aiming to reassure stakeholders of continuity in operations and growth plans.