Nestle has fired its chief executive after just one year in the job because he failed to disclose a “romantic relationship” with a “direct subordinate”.
The Swiss food giant, which makes Kit Kat chocolate bars and Nespresso coffee capsules, said Laurent Freixe has been dimissed with “immediate effect” following an investigation led by Nestle’s chair and lead independent director.
The BBC understands the inquiry was triggered by a report made through the company’s whistleblowing channel.
Nestle chair Paul Bulcke, said: “This was a necessary decision. Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service at Nestlé.”
The relationship was with an employee who is not on the executive board and the investigation began because it represented a conflict of interest, the BBC has learned.
As well as Mr Bulcke, independent director Pablo Isla oversaw the inquiry into Mr Freixe “with the support of independent outside counsel”.
Mr Freixe had been with Nestle for nearly 40 years but stepped up to the global chief executive role last September, replacing Mark Schneider.
Philipp Navratil, who has been with Nestle since 2001, has been appointed as Mr Freixe’s successor.
Mr Bulcke said the company was “not changing course on strategy and we will not lose pace on performance”.
Nestle confirmed that Mr Freixe will not receive an exit package.
Other companies have parted ways with their chief executives following investigations into their personal relationships with colleagues.
BP chief executive Bernard Looney, who led the oil giant for three years, quit after admitting he was not “fully transparent” initially.
Steve Easterbrook was fired by McDonald’s in 2019 after finding he had a consensual relationship with an employee.
But McDonald’s said further investigation found that the British executive had three additional relationships with staff.
He initially received $105m (£77.5m) in a severance package which he later returned. In 2023, he was fined $400,000 by the US financial watchdog for misleading investors. He paid the penalty without admitting or denying the claims.
