USA 
United Kingdom
Nestlé has dismissed CEO Laurent Freixe with immediate effect after determining he had not disclosed a “romantic relationship” with a direct subordinate.
The Swiss multinational, maker of Kit Kat chocolate bars and Nespresso coffee capsules, confirmed the decision following an inquiry overseen by chair Paul Bulcke and independent director Pablo Isla. The BBC reported that the case originated from a tip submitted via the company’s whistleblowing channel.
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.”
Investigation and governance response
The company said the matter was treated as a conflict of interest because the employee involved was not part of the executive board. Bulcke and Isla directed the investigation “with the support of independent outside counsel.”
The Financial Times reported concerns had first emerged earlier this year. An internal review initially concluded the claims were unsubstantiated, but continuing complaints prompted a second, external probe that ultimately upheld the allegations.
Nestlé issued a statement saying: “We acted at all times in line with best practice corporate governance. The external investigation was opened shortly after the initial internal investigation, and today's decision shows that we are taking allegations and investigations seriously.”
Freixe, who joined the company nearly four decades ago, became global chief executive in September last year after succeeding Mark Schneider. Nestle confirmed he will not receive an exit package. The BBC said it had contacted Freixe for comment.
Legal expert and Keystone Law employment partner Michelle Last, said: “Usually, it is best to have a “relationship policy” in place setting out what should happen in such situations, otherwise it is likely to be much harder to take action. Clandestine inter-employee relationships at work are commonplace and can cause havoc. Yet surprisingly very few employers have a relationship policy in place."
Nick Henderson-Mayo, Head of Compliance at VinciWorks, added: “For executive governance, this is a significant moment revealing that no one is above the code. Transparency must be foundational, not optional. By putting in place mandatory disclosure procedures, clear consent guidelines, and training that emphasises how power disparities can skew relationships, organisations must move from reactive investigations to proactive prevention."
Succession and wider context
Philipp Navratil, who has worked for the company since 2001, has been appointed as Freixe’s successor. Bulcke stressed the business would remain on course: “We are not changing course on strategy and we will not lose pace on performance.”
Bulcke is due to step down as chair in 2026, with Isla, the former head of Zara-owner Inditex, proposed as his replacement.
The dismissal adds Nestlé to a growing list of companies forced to replace top executives after personal relationships became a governance issue.
BP chief executive Bernard Looney stepped down after acknowledging he had not been “fully transparent” about past relationships.
McDonald’s removed Steve Easterbrook in 2019 for breaching company policy by engaging in a consensual relationship with an employee. A later investigation found three additional relationships, leading to Easterbrook returning a $105 million severance package. In 2023, US regulators fined him $400,000 for misleading investors.
