Nestlé boss Laurent Freixe was abruptly booted on Monday for failing to disclose a romantic relationship with an underling less than a year after taking the reins, the Swiss food giant said.
The world’s largest food company — which has a portfolio of brands that includes Gerber, Purina, Perrier and KitKat — said an internal investigation found the French-born Freixe had violated its code of conduct, the company said.
“The decision was necessary,” Nestle board chairman Paul Bulcke said in a statement.
“Nestlé’s values and governance form the solid foundation of our company.”
The 63-year-old Freixe (pronounced Fraysh) will receive no exit package, the company said.
It did not provide any specifics about Freixe’s romantic relationship with the direct subordinate.
Philipp Navratil, the 48-year-old boss of Nestlé’s Nespresso unit who has spent 24 years with the company, was handed the top job effective immediately, the company said.
Freixe joined Nestlé in 1986 and rose through senior posts across Europe and Latin America before succeeding ousted CEO Mark Schneider.
Freixe’s shock departure threatens more volatility for Nestle amid a tough consumer environment and the global threat of trade tariffs. The firm announced in June that Bulcke would stand down next year.
Nestlé’s stock has fallen more than 17% over the past year, sliding from a 52-week high of $114.65 per share in March to as low as $87.38 last month. It closed at $94.36 on Friday.
Freixe’s sudden exit is the latest management reshuffle at a global consumer goods and food company this year, including Nestle rival Unilever, Diageo and Hershey.
Kohl’s fired CEO Ashley Buchanan in May after an investigation found he had pushed for deals with a vendor with whom he had a personal relationship, after little more than 100 days in the position.
Navratil, who started in the company’s internal audit unit in 2001, was appointed to the executive board in January after his successful stint running Nespresso.
“It is a privilege to lead Nestlé into the future,” Navratil said in a statement.
“I fully support the company’s strategic direction and the action plan already underway to strengthen Nestlé’s performance.”
