Geneva, September 2, 2025 – Nestlé has dismissed its Chief Executive Officer Laurent Freixe after an internal investigation revealed he breached the company’s code of conduct by failing to disclose a romantic relationship with a subordinate. The Swiss multinational announced that Philipp Navratil would immediately take over as CEO.

A 40-Year Career Cut Short

Laurent Freixe, 63, had been associated with Nestlé for four decades. He joined the company negotiating contracts with grocery stores and steadily rose through the ranks. In September 2024, he succeeded Ulf Mark Schneider as CEO, marking the peak of his career. But exactly one year later, on September 1, 2025, he was dismissed following the probe into his personal conduct.

What Led to His Dismissal

According to a company statement, Freixe was removed with “immediate effect” after Nestlé’s leadership concluded he violated its Code of Business Conduct. The inquiry was led by Chairman Paul Bulcke and Lead Independent Director Pablo Isla, with assistance from external counsel.

“This was a necessary decision. Nestlé’s values and governance are strong foundations of our company,” Bulcke said, adding thanks for Freixe’s long years of service.

The investigation began after concerns about Freixe’s relationship were raised earlier this year. While an initial inquiry did not substantiate the allegations, a second round was triggered when new complaints surfaced. This time, the findings upheld claims that the relationship presented a conflict of interest.

How the Affair Was Exposed

Reports indicate the relationship came to light through Nestlé’s whistleblowing channel. The BBC said the subordinate involved was not part of the company’s executive board, and her identity has not been disclosed. The Financial Times further reported that concerns had circulated internally for months before the formal investigation.

No Exit Package

Unlike many corporate leaders who leave with large severance deals, Freixe will not receive an exit package. The BBC reported that his departure is considered a breach, disqualifying him from such benefits.

Freixe, however, does hold more than 41,000 Nestlé shares, valued at around $3.6 million. His annual compensation was never disclosed publicly, but his predecessor earned nearly 9.6 million Swiss francs (about $11.9 million), suggesting Freixe’s salary was in a similar range.

A Shock for Nestlé

The dismissal has shocked both Nestlé employees and the wider corporate world. For a leader who had been part of the company for 40 years, the downfall was both swift and public. The case also underscores the growing scrutiny around corporate governance and ethics in global firms.

Nestlé has emphasized that the decision reflects its commitment to integrity, transparency, and accountability. For Freixe, it marks an abrupt and ignominious end to what had once been a celebrated career in one of the world’s largest consumer goods companies.