Popular Swiss food giant, Nestlé, has sacked its Chief Executive, Laurent Freixe, after his secret relationship with a subordinate became public knowledge.
The company recently revealed that the decision was necessary to safeguard its values and governance standards.
Replacing Laurent with Philipp Navratil, CEO of Nespresso, Nestlé Chairman Paul Bulcke expressed confidence in Philipp’s ability to move the organization forward despite its current financial struggles, including a 10.3% drop in first-half profits and a 25% fall in share price in 2024.
According to him, having a romantic relationship with a direct subordinate goes against the company’s business conduct; therefore, Laurent’s dismissal had to happen
“The departure of Laurent Freixe follows an investigation into an undisclosed romantic relationship with a direct subordinate which breached Nestle’s code of business conduct.
This was a necessary decision. Nestle’s values and governance are strong foundations of our company. I thank Laurent for his years of service.
The board is confident that Philipp Navratil 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,” he said.
Pledging to take Nestlé to greater heights, Navratil vowed to lead by example.
“I fully embrace the company’s strategic direction, as well as the action plan in place to drive Nestle’s performance,” he added.
Nestlé, headquartered in Vevey, Switzerland, is the brain behind successful brands like KitKat, Nescafé, Purina, Maggi, and Gerber.
