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You are at:Home»Business»How the Nestle CEO’s inappropriate relationship with a subordinate was uncovered
Business

How the Nestle CEO’s inappropriate relationship with a subordinate was uncovered

Buddy DoyleBy Buddy DoyleSeptember 3, 2025No Comments3 Mins Read
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How the Nestle CEO’s inappropriate relationship with a subordinate was uncovered
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A tip to an internal hotline exposed Nestlé’s chief executive Laurent Freixe’s improper relationship with a direct report, leading to his ouster from the company, according to a new report.

The tipster on Nestlé’s independent global reporting channel known as “Speak Up” was the first to expose Freixe’s intimate relationship with a marketing executive, according to The Wall Street Journal. 

While that tip served as the catalyst for Freixe’s ouster, it wasn’t enough on its own to force his resignation.

NESTLÉ CEO LAURENT FREIXE OUSTED OVER INAPPROPRIATE WORKPLACE RELATIONSHIP WITH SUBORDINATE

The company had initially denied that there was any improper relationship taking place, the Journal reported. It took subsequent investigations, aided by additional hotline reports and a letter to the Nestlé chairman, for the company to finally dismiss its top executive, the Journal reported.

A spokesperson for Nestle confirmed to FOX Business that anonymous reports were submitted through Speak Up, and said that the “Board acted immediately on receiving the information.”

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“In line with best corporate governance practice, the company conducted a rigorous and thorough internal and external investigation, with the support of independent outside counsel,” the spokesperson said in a statement. “Nestlé has strong values and expects everyone, including senior leadership, to live up to them.” 

Nestle SA Building in Switzerland

On Monday, the company confirmed in a press release on its website that Freixe had stepped down due to the undisclosed relationship, which breached Nestlé’s code of business conduct, and that Nestlé Nespresso S.A. CEO Philipp Navratil was replacing him effective immediately. 

“I am honored by the trust the Board has placed in me, and it is a privilege to take on the responsibility of leading Nestlé into the future,” Navratil said in a statement, adding that he fully embraces “the company’s strategic direction, as well as the action plan in place to drive Nestlé’s performance.”

Navratil has overseen the global Nespresso division since July 2024. Navratil joined Nestlé in 2001 and rose through international commercial and leadership roles, including head of the coffee and beverage business in Mexico, where he strengthened the Nescafé brand. In 2020, he took charge of Nestlé’s global coffee strategic business unit, later becoming CEO of Nespresso in 2024. 

Nestle Toll House

Freixe, who is credited with being central to shaping the company’s strategy and portfolio, marked the latest setback for a company whose prior CEO, Ulf Mark Schneider, stepped down voluntarily due to underperformance concerns.

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Meanwhile, Freixe’s ouster came only a year after being appointed to the top position. Freixe joined Nestlé in France in 1986 and advanced through senior roles across multiple markets and zones. He led Zone Europe through the 2008–2014 financial crisis, then served as CEO of Zone Americas, and later CEO of Zone Latin America from 2022.

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