Nestle Has a New CEO
Nestlé S.A.
Avenue Nestlé 55
Vevey, 1800
Switzerland
Main Phone: 41 21 924 1111
Website: https://www.nestle.com
Industry Sector: Consumer Defensive - Packaged Foods
Full Time Employees: 251,786
Fiscal Year End: Dec. 31
Annual Revenue: 90.9 Billion CHF
CEO: Philipp Navratil
Forbes Global 2000 Rank: #48
Nestlé’s abrupt ousting of CEO Laurent Freixe less than a year into his tenure has sent shockwaves through the food industry. Below is a detailed Q&A that unpacks the events, controversies, and consequences surrounding Freixe’s dismissal, drawing from multiple major news sources.
Why was Laurent Freixe removed as CEO of Nestlé?
Laurent Freixe was dismissed following an internal investigation that revealed he maintained an undisclosed romantic relationship with a direct subordinate, violating Nestlé’s Code of Business Conduct. The company declared the relationship a breach of ethical guidelines, emphasizing their commitment to strong corporate governance. Freixe was terminated effective immediately and left the company without severance or an exit package.
What triggered the investigation into Freixe’s conduct?
The investigation began after Nestlé’s internal “Speak Up” channel received anonymous reports in the spring of 2025, raising concerns about Freixe’s relationship with a subordinate. Freixe initially denied any wrongdoing. However, continuing suspicion led Nestlé’s board—overseen by Chairman Paul Bulcke and Lead Independent Director Pablo Isla and assisted by outside counsel—to conduct a rigorous inquiry, during which the inappropriate relationship was substantiated.
How did Nestlé justify Freixe’s immediate removal?
Nestlé’s leadership underscored that the decision was “necessary” to uphold the company’s values and governance. In official statements, Chairman Bulcke highlighted that the strength of Nestlé’s culture and reputation rests on holding even the highest executives accountable to the same standards as all employees.
How long had Laurent Freixe served as CEO, and what was his background?
Laurent Freixe had only been appointed CEO in September 2024, following the exit of his predecessor Mark Schneider. Freixe, a veteran of Nestlé beginning his career in 1986, rose through various senior leadership positions in Europe and Latin America. His swift dismissal marks one of the shortest tenures for a CEO in Nestlé’s history, and notably, he is the second CEO ousted in less than twelve months, highlighting a period of exceptional leadership volatility.
Who is replacing Laurent Freixe as Nestlé CEO?
Philipp Navratil, who was serving as head of Nespresso and had recently joined Nestlé’s Executive Board, has been named as Freixe’s successor. Navratil began his tenure at Nestlé as an auditor in 2001, later serving in roles across Central America and Latin America, leading beverage and coffee units, and ultimately being recognized by company leadership for his results-driven yet collaborative management style. Navratil’s appointment is seen as an attempt to restore stability and drive strategic execution amid the ongoing turmoil.
Nestle Org Chart - Executive Leadership Team
How did Nestlé’s Board and major investors react to the firing?
Chairman Paul Bulcke and board leadership stressed the importance of maintaining the company’s ethical standards and downplayed any change in strategic direction, asserting that the ouster was about ethics and governance—not business disagreements. Some large investors, like Deka’s Ingo Speich, described the loss of two CEOs and a chairman in a single year as “unprecedented,” underlining the urgent need for renewed stability, strategic clarity, and business reforms.
What are the broader implications for Nestlé’s leadership and brand?
The dual succession crises have compounded existing challenges for Nestlé, including stagnant sales, supply chain complications, and market headwinds such as new tariffs and rising commodity costs. Analysts note that repeated CEO changes, especially for non-performance-related issues, risk demoralizing senior staff and shaking investor confidence, potentially compounding difficulties in executing turnarounds or securing new growth opportunities. The company’s share price slid 0.8% after the announcement, reflecting investor anxiety over both the scandal and the strategic path forward.
Nestle Org Chart - Board of Directors
How did the company handle the succession process?
Nestlé moved quickly to replace Freixe, signaling the value of having senior internal candidates “on the bench.” Philipp Navratil’s elevation is being positioned as a seamless leadership transition, designed to reassure both staff and markets that the company’s strategy remains intact and that disciplinary action—even at the top—aligns with deeply rooted corporate values.
Did Freixe or the implicated subordinate receive any severance or compensation?
According to statements from Nestlé, Laurent Freixe departed without any exit package or severance, reflecting the seriousness with which the infraction was regarded. The subordinate involved in the relationship has not been publicly identified, and the company has not indicated whether any disciplinary measures were taken in that case.
How does this compare to similar executive scandals in recent years?
Freixe’s dismissal echoes high-profile ousters at other global firms: McDonald’s fired its CEO Steve Easterbrook in 2019 for a consensual relationship with an employee, and BP’s Bernard Looney resigned for failure to disclose personal relationships. Such scandals have prompted many companies, especially multinationals, to step up scrutiny and clarify policies prohibiting undisclosed romantic relationships where a power imbalance exists.
What was Freixe’s legacy as Nestlé CEO?
Given his brief tenure, Freixe’s impact as CEO was limited. He was known for reversing planned restructures and launching cost savings and product reformulation drives, but also presided over a sharp share price decline—down 17% over his twelve months, and nearly a third across the past five years. The company continues to face operational and strategic challenges, including consumer shifts and global economic headwinds.
What are the strategic priorities for the new CEO, Philipp Navratil?
Expectations for Navratil are high: major investors want him to reform the business model, revamp M&A strategies, and focus on restoring growth—especially in emerging markets. In official statements, Navratil pledged allegiance to Nestlé’s current strategy but also signaled “intensity” in accelerating execution and driving value creation. The stakes are high as shareholders demand both moral leadership and business results.
What governance lessons is Nestlé drawing from this crisis?
Nestlé’s swift, no-severance dismissal of Freixe reflects its commitment to zero-tolerance policies for ethics code violations. Observers say the decision sends a strong message about transparency and accountability, especially as workplace relationships and power imbalances draw increasing scrutiny worldwide. The internal and external investigation, direct involvement of the board, and reliance on outside counsel align with best practices in modern corporate governance.
Final Thoughts
The ousting of Laurent Freixe as CEO has underscored the pressure on global corporations to enforce ethical rules with consistency, regardless of seniority or circumstances. As Nestlé navigates the fallout, the new leadership faces the dual task of restoring external confidence and upholding internal standards—a reminder that corporate culture and financial performance are more intertwined than ever in today’s business landscape.
Sources:
https://www.cbsnews.com/news/nestle-ceo-laurent-freixe-dismissed-over-subordinate-relationship/
https://www.reuters.com/business/nestle-plunged-into-crisis-ceo-fired-hiding-romance-with-staffer-2025-09-02/
https://www.foxbusiness.com/markets/nestle-ceo-laurent-freixe-ousted-over-inappropriate-workplace-relationship-subordinate
https://www.nytimes.com/2025/09/01/business/nestle-laurent-freixe-inappropriate-relationship.html
https://www.wsj.com/business/nestle-ceo-resigns-employee-tip-0e6e7c30
