Leadership shake-up follows misconduct findings
Nestlé has dismissed chief executive Laurent Freixe with immediate effect after an internal and external investigation concluded he breached the company’s code of conduct by failing to disclose a romantic relationship with a direct subordinate.
The Swiss consumer goods giant announced Philipp Navratil, previously head of Nespresso, as Freixe’s successor. Navratil, who joined Nestlé as an auditor in 2001 and rose through the ranks across Latin America and its global coffee business, joined the executive board earlier this year.
Nestlé chair Paul 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.”
Complaints raised internally
Concerns were first flagged earlier this year through “Speak Up,” Nestlé’s internal whistleblowing system. Reports centred on potential conflicts of interest and favouritism. An initial investigation dismissed the claims as unsubstantiated, but after further complaints, the board launched a second probe with external legal counsel. This concluded that Freixe’s conduct breached company rules.
Freixe, who had been with Nestlé for nearly four decades, was appointed CEO in August 2023. His sudden departure after just one year adds to a turbulent period for the £163bn group.
Mounting pressures for Nestlé
The leadership change comes as Nestlé faces slowing sales and growing scrutiny. Its share price fell 3.2% on Tuesday, to SFr73, continuing a steep decline of more than 40% since 2022.
The group has also been hit by French investigations into alleged unauthorised water filtration practices, alongside a frozen meal recall in the US over contamination concerns.
Freixe had sought to restore focus on Nestlé’s core businesses, telling the Financial Times in May that his predecessor’s strategy had “weakened the fabric” of the company.
Sensitive moment for investors
Navratil’s appointment has been cautiously welcomed. Jean-Philippe Bertschy, an analyst at Vontobel, said the move comes at a “sensitive juncture” but added that Navratil is a “proven leader with an excellent track record,” which may reassure investors unsettled by recent turbulence.
The shake-up also coincides with Bulcke’s planned departure as chair. Former Inditex boss Pablo Isla has been proposed as his successor, signalling further change at the top of the world’s largest food and beverage company.
