Nestlé CEO Laurent Freixe Fired for Affair With Employee: Here’s What Happened

Nestle CEO Laurent Freixe has made the headlines but for all the bad reasons. The FMCG top boss was fired after an internal probe confirmed a violation of its Code of Business Conduct: an undisclosed romantic relationship with a direct subordinate. 

The investigation, led by Chairman Paul Bulcke and lead independent director Pablo Isla, and supported by external counsel, concluded the breach warranted swift action. Freixe’s departure was effective September 1, 2025, and came without an exit package underscoring Nestle’s zero-tolerance on governance lapses. His successor, Philipp Navratil, has been appointed effective immediately. 

Let's break down with this blog how Nestle’s sudden CEO dismissal unfolded, what it means for the company’s governance and investors, and what the new leader Philipp Navratil brings to the table.

Inside the Nestlé CEO Laurent Freixe Affair: What the Board Found

• Reason for Exit: Freixe was dismissed for an undisclosed relationship with a subordinate, breaching Nestlé’s Code of Business Conduct.
• Code Explained: The code requires disclosure of any conflict of interest, where personal ties could affect professional judgment.
• Whistleblower Role: The issue was flagged in early 2025 through Nestlé’s whistleblowing channel.
• Investigations: An initial review found little evidence, but a board-supervised probe with external counsel later confirmed the breach.
• Board Decision: On Sept 1, 2025, Nestle Chairman Paul Bulcke announced Freixe’s immediate dismissal without severance, reflecting strict governance.
• Official Comment: Bulcke said, “Nestlé’s values and governance are strong foundations of our company… this was a necessary decision to protect the integrity of our culture.”

Leadership Change at Nestlé: From Laurent Freixe to Philipp Navratil

Born in April 1962, educated at EDHEC Business School, Freixe joined Nestlé in 1986, rising through roles in marketing, dairy, Europe, and the Americas.

Laurent Freixe: Career and Contributions

• Known for cost-control and innovation, and for launching the Nestlé Needs YOUth program to support youth employment.
• Became CEO in September 2024, succeeding Ulf Mark Schneider.
• Focused on efficiency and portfolio streamlining, moving away from health supplements toward core businesses like coffee, pet care, and food.
• Delivered notable category growth: +5.1% in coffee and +8.9% in confectionery in Q1 2025, as per Nestlé’s official report.

Who is Philipp Navratil, the New CEO

Born in 1976, Navratil Joined Nestlé in 2001 as an internal auditor, later taking on senior roles in Central America and the coffee business in Mexico.

• Holds dual Swiss-Austrian nationality; MBA from the University of St. Gallen.
• Played a key role in shaping global strategy for Nescafé and Starbucks licensing.
• Became CEO of Nespresso in July 2024 and joined the Executive Board in January 2025.
• Recognized for a collaborative leadership style, strong expertise in coffee and beverages, and a track record of driving growth in complex markets.
• Backed by Chairman Paul Bulcke, who expressed confidence that Navratil will restore growth and efficiency while maintaining strategic continuity.

Financial Snapshot: Nestle’s Latest Performance

Source: Nestle Half Year Report

CEOs Downfall Due to Affairs with Employees: First Astronomer, Now Nestle’s Laurent Freixe

This year has already seen more than its fair share of boardroom scandals. The removal of Nestlé CEO Laurent Freixe is the second high-profile dismissal this year over undisclosed workplace relationships. Earlier, Astronomer Inc.’s CEO Benjamin Hindman was forced to resign in March after the board determined his secret relationship with a subordinate breached governance norms. Both incidents highlight how boards are moving faster and harder on accountability, leaving little room for reputational risks.

The similarities between the two cases are hard to miss. Both involved seasoned executives with long track records who saw their careers end abruptly not because of business results but because of personal choices. For shareholders, it is a reminder that in today’s environment, boards are quicker to act on conduct issues than ever before. With Nestlé now in the spotlight, the message is clear: governance and trust can outweigh even decades of experience at the very top.

Governance, Market Implications & Broader Context for Nestlé

• Governance Signal: Nestle’s zero-tolerance enforcement as no exit package and no delay was there with this decision, sends a firm message on ethics and internal accountability. This aligns with broader consumer-sector corporate governance expectations.
• Leadership Instability: This marks Nestle’s third CEO change in just over a year (Schneider → Freixe → Navratil), heightening investor concern over strategic consistency.
• Competitive Landscape: The newly merged Keurig Dr Pepper-JDE Peet’s poses a formidable coffee business competitor, intensifying pressure on Navratil to deliver results.
• Investor Watch: Analysts will look closely at whether Navratil can stabilize performance, revitalize margins, and deliver on Nestle’s core strengths, coffee, pet care, and innovation.

For US investors, it is worth noting that Nestle’s ADRs trade in the OTC market under the ticker NSRGY, providing direct exposure to the company despite its Switzerland listing.

Nestle has taken principled, swift action to reinforce its governance standards. While Freixe’s departure was abrupt and dramatic, Navratil’s ascension signals a blend of continuity and renewed operational focus, especially in coffee. As macro pressures persist, the path ahead demands results and Navratil’s ability to deliver them will determine whether Nestle regains market confidence.

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