Nestlé has dismissed CEO and company veteran Laurent Freixe after an “undisclosed romantic relationship with a direct subordinate”.
In a statement issued just after 19:00 CET today (1 September), the world’s largest food and drinks group said Freixe had left the business with immediate effect.
Freixe, a company veteran who had worked at Nestlé for almost 40 years, was named CEO in August last year, taking the helm the following month.
The Nescafé and Perrier maker said the relationship breached its “code of business conduct”.
Chairman Paul 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.”
The Swiss giant has appointed Philipp Navratil, the CEO of Nestlé’s coffee business Nespresso, as its new chief executive.
Navratil has worked at Nestlé since 2001, holding roles in Central America before becoming the SVP of the company’s coffee strategic business unit in 2020.
Bulcke, who Nestlé announced in June is set to step down as chairman next year, said: “Philipp is recognised for his impressive track record of achieving results in challenging environments. Renowned for his dynamic presence, he inspires teams and leads with a collaborative, inclusive management style. The board is confident that he will drive our growth plans forward and accelerate efficiency efforts. We are not changing course on strategy and we will not lose pace on performance.”
Navratil added: “I fully embrace the company's strategic direction, as well as the action plan in place to drive Nestlé's performance. I look forward to working closely with the entire leadership of the company, in alignment with the board, chairman Paul Bulcke and chairman-designate Pablo Isla, to accelerate execution and to drive the value creation plan with intensity.”
Nestlé announced in June Bulcke would not stand for re-election as chairman at the company’s next AGM in April.
Bulcke has worked for the group for more than 40 years, including nine as CEO up to 2016 before he was succeeded by Mark Schneider.
Freixe replaced Schneider a year ago.
