Swiss food giant Nestlé has fired its CEO, Laurent Freixe, after an internal investigation revealed he failed to disclose a romantic relationship with a direct subordinate.
The company announced that Freixe was dismissed immediately after the probe confirmed a breach of its code of business conduct.
Nestlé Chairman Paul Bulcke said the inquiry was launched following tips received through the company’s whistleblowing system. The investigation, handled by external lawyers, confirmed the violation. Freixe will not receive an exit package.
“This was a necessary decision. Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service,” Bulcke said in a statement.
Philipp Navratil, who previously led Nespresso, has been appointed as the new CEO.
The leadership change comes just a year after Freixe replaced former CEO Ulf Mark Schneider. Analysts believe the company now faces additional pressure as it deals with slower growth and a challenging consumer market, though Nestlé says its strategy will remain unchanged.
The action follows a similar high-profile case in the tech world involving Astronomer’s CEO, Andy Byron.
A kiss caught on the “kiss cam” at a Coldplay concert with the company’s HR head, Kristin Cabot, went viral. Allegations of misconduct quickly followed. Byron resigned, and the HR head was placed on leave amid concerns over professional boundaries and misuse of power.
