Nestlé faces leadership turmoil as CEO Laurent Freixe exits

Nestlé has dismissed its CEO, Laurent Freixe, following an internal investigation into alleged misconduct. While reports suggested he engaged in an undisclosed romantic relationship with a direct subordinate, the company has publicly denied that such a relationship took place.

Instead, Nestlé confirmed only that the probe uncovered a breach of its code of conduct significant enough to warrant his removal.

The decision came after two separate inquiries, the second of which was overseen by Chairman Paul Bulcke and Lead Independent Director Pablo Isla with the support of external counsel.

The board ultimately determined that Freixe’s actions represented a serious lapse in judgment and fell short of the standards expected of Nestlé’s top executive.

Philipp Navratil, a Nestlé veteran of more than two decades and most recently head of the Nespresso division, has been appointed as Freixe’s immediate successor. The company said its strategic priorities remain unchanged despite the sudden leadership change.

The exit adds to instability at the top of the world’s largest food company, which has now seen two chief executives depart in just over a year.

Freixe succeeded Mark Schneider less than twelve months ago, and his removal underscores growing unease among investors over Nestlé’s direction.

During Freixe’s brief tenure, Nestlé’s share price dropped roughly 17 percent, extending a longer-term decline of nearly one-third over the past five years.

Analysts and critics have pointed to sluggish growth and weak execution as ongoing concerns. The board’s move to install Navratil is seen as an effort to stabilize the company’s image and restore market confidence at a time of rising investor pressure.

The leadership shake-up highlights broader debates over governance and accountability at multinational corporations.

While Nestlé continues to deny the allegations that initially surfaced, the decision to remove Freixe makes clear that the board considered the conduct uncovered during the investigation incompatible with his role as chief executive.