{"id":113755,"date":"2025-09-02T08:27:11","date_gmt":"2025-09-02T08:27:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/113755\/"},"modified":"2025-09-02T08:27:11","modified_gmt":"2025-09-02T08:27:11","slug":"nestle-dismisses-ceo-for-not-disclosing-romantic-relationship-with-employee","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/113755\/","title":{"rendered":"Nestle dismisses CEO for not disclosing romantic relationship with employee"},"content":{"rendered":"

Open this photo in gallery:<\/a><\/p>\n

Nestle CEO Laurent Freixe in Ecublens near Lausanne, Switzerland, in April.Pierre Albouy\/Reuters<\/p>\n

Nestle NSRGY<\/a> has abruptly dismissed its CEO Laurent Freixe for failing to disclose a romantic relationship with a subordinate, the Swiss food giant said on Monday, a dramatic removal exactly a year after he took the reins.<\/p>\n

The maker of products ranging from KitKat to Nesquik said that it had appointed veteran insider Philipp Navratil, who had headed the Nespresso coffee unit, as Freixe\u2019s successor with immediate effect.<\/p>\n

The shock departure threatens more volatility for Nestle amid a tough consumer environment and the disruptive U.S. trade tariffs.\u00a0<\/p>\n

Nestle said Freixe\u2019s departure follows an investigation overseen by Chairman Paul Bulcke and Lead Independent Director Pablo Isla into an undisclosed romantic relationship with a direct subordinate, which breached the company\u2019s code of business conduct.\u00a0<\/p>\n

Nestle chairman steps down following concerns over company\u2019s direction, investors say<\/a><\/p>\n

When does office romance become cause for dismissal?<\/a><\/p>\n

\u201cThis was a necessary decision,\u201d Bulcke said in a statement. \u201cNestle\u2019s values and governance are strong foundations of our company. I thank Laurent for his years of service.\u201d<\/p>\n

The firm announced in June that Bulcke, its long-standing chairman, would stand down next year.<\/p>\n

A company spokesman told Reuters concerns about a possible relationship between Freixe and a direct report first emerged in the spring through an internal company hotline. The board of directors immediately opened an investigation into the matter, which was however inconclusive, this person added.<\/p>\n

As the concerns persisted, the company launched a second probe, overseen\u00a0by Bulcke and Isla and with the help of an external firm, which confirmed the relationship. Freixe had initially denied the relationship to the board, the spokesperson added.<\/p>\n

The ousted executive will not receive an exit package after his dismissal, Nestle told Reuters.<\/p>\n

The CEO\u2019s abrupt removal comes exactly one year after Nestle ousted his predecessor Mark Schneider, raising questions on its next course of action even though the company said it would not change course on strategy and targets.<\/p>\n

\u201cThis new change is likely to keep afloat the question mark about the midterm direction of the company,\u201d JP Morgan analysts said in a note to clients.<\/p>\n

Nestle shares have fallen 17% over the past year, lagging its rivals and the broader market.<\/p>\n

The sudden exit is the latest management reshuffle at a global consumer goods and food company this year, including Nestle rival Unilever , Diageo and Hershey .<\/p>\n

Top management\u2019s conduct has come under intense scrutiny, particularly in the United States.\u00a0Kohl\u2019s fired CEO Ashley Buchanan in May after an investigation found he had pushed for deals with a vendor with whom he had a personal relationship, after little more than 100 days in the position. <\/p>\n

And Astronomer CEO Andy Byron resigned in July after being caught on camera embracing a staffer at a Coldplay concert.\u00a0<\/p>\n

Navratil began his career with Nestle in 2001 as an internal auditor. After holding various commercial roles in Central America, he was appointed country manager for Nestle Honduras in 2009.\u00a0<\/p>\n

He assumed leadership of the coffee and beverage business in Mexico in 2013, and transitioned to Nestle\u2019s Coffee strategic business unit in 2020.\u00a0<\/p>\n

He moved to Nespresso in July 2024, and joined the Nestle executive board on Jan. one this year.<\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: Nestle CEO Laurent Freixe in Ecublens near Lausanne, Switzerland, in April.Pierre Albouy\/Reuters Nestle…\n","protected":false},"author":2,"featured_media":113756,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[901,888,902,879,877,903,45,49,48,876,895,896,891,878,875,46,549,295,894,887,914,880,881,893,889,890,884,904,885,909,910,912,907,911,905,908,882,898,899,714,897,906,865,61,900,892,886,883,913],"class_list":["post-113755","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-alberta","tag-arts-news","tag-bc","tag-breaking-news","tag-breaking-news-video","tag-british-columbia","tag-business","tag-ca","tag-canada","tag-canada-news","tag-canada-sports","tag-canada-sports-news","tag-canada-trafficcanada-weather","tag-canadian-breaking-news","tag-canadian-news","tag-economy","tag-education","tag-environment","tag-federal-government","tag-foreign-news","tag-globe-and-mail","tag-globe-and-mail-breaking-news","tag-globe-and-mail-canada-news","tag-government","tag-life-news","tag-lifestyle","tag-local-news","tag-manitoba","tag-national-news","tag-new-brunswick","tag-newfoundland-and-labrador","tag-northwest-territories","tag-nova-scotia","tag-nunavut","tag-ontario","tag-pei","tag-photos","tag-political-news","tag-political-opinion","tag-politics","tag-politics-news","tag-quebec","tag-sports-news","tag-technology","tag-travel","tag-trudeau","tag-us-news","tag-world-news","tag-yukon"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/113755","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=113755"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/113755\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/113756"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=113755"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=113755"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=113755"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}