Nestlé has removed its CEO after an investigation found he allegedly had an undisclosed romantic relationship with a subordinate.
The Switzerland-based food company’s board of directors announced on Monday, Sept. 1, that Laurent Freixe’s dismissal was effective immediately.
According to his company bio, Freixe became CEO last year and had been with Nestlé for nearly 40 years, starting in the sales and marketing divisions of Nestlé France.
Nestlé said the alleged relationship violated its code of business conduct.
“In line with best practice corporate governance, the Board ordered an investigation overseen by Chairman Paul Bulcke and Lead Independent Director, Pablo Isla, with the support of independent outside counsel,” the company said in a statement.
Bulcke described the decision to remove Freixe as “necessary.”
“Nestlé’s values and governance are strong foundations of our company,” he added. “I thank Laurent for his years of service at Nestlé.”
Philipp Navratil has been appointed as the new CEO. He started at Nestlé in 2001 as an internal auditor and most recently served as CEO of Nespresso since July 2024. He also joined Nestlé’s executive board earlier this year.
“Renowned for his dynamic presence, he inspires teams and leads with a collaborative, inclusive management style,” Bulcke said of Navratil. “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 responded to the appointment in a statement: “I am honored by the trust the Board has placed in me, and it is a privilege to take on the responsibility of leading Nestlé into the future. I fully embrace the company’s strategic direction, as well as the action plan in place to drive Nestlé’s performance.”
In an email to PEOPLE on Tuesday, Sept. 2, a Nestlé spokesperson said the company had no further comment beyond its earlier release. The spokesperson explained the board acted immediately after receiving “anonymous reports” through Speak Up, Nestlé’s independent global reporting channel, in May.
“In line with best corporate governance practice, the company conducted a rigorous and thorough internal and external investigation, with the support of independent outside counsel,” the spokesperson said. “This has resulted in the decision announced yesterday. Nestlé has strong values and expects everyone, including senior leadership, to live up to them.”
The spokesperson also confirmed to PEOPLE that Freixe will not receive a severance package.
Freixe’s firing is the latest example of a top executive leaving a major company over alleged personal relationships with colleagues.
Andy Byron and human relations executive Kristin Cabot resigned from Astronomer in July after being caught on a kiss cam at a Coldplay concert.
In 2023, Bernard Looney stepped down as CEO of BP after failing to disclose relationships with colleagues. And in 2019, McDonald’s fired CEO Steve Easterbrook for violating company policy by having a consensual relationship with an employee.
