How Nestle CEO's Secret Affair With Junior Employee Was Exposed

Nestle has fired its chief executive officer, Laurent Freixe, after an internal investigation confirmed he breached company policy by having a secret "romantic relationship" with a junior employee.

The inquiry began after a complaint was filed through the Swiss food giant's whistleblowing channel, the BBC reported. The company's compliance reporting forum, "Tell Us," allows employees and external stakeholders to confidentially flag potential breaches of Nestle's principles, such as conflicts of interest, harassment, or misconduct.

Concerns about Mr Freixe's relationship with an employee were first raised last year through the company's internal complaints system, The Financial Times reported.

The first inquiry found no evidence to support the claims. But when fresh complaints pointed to conflicts of interest and favouritism, Nestle ordered a new investigation with external counsel.

The investigation was overseen by Nestle chairman Paul Bulcke and led by independent director Pablo Isla.

"This was a necessary decision. Nestle's values and governance are strong foundations of our company. I thank Laurent for his years of service," Bulcke said in a statement.

Mr Freixe will not receive an exit package, Nestle confirmed.

Laurent Freixe, a company veteran, joined Nestle in France in 1986 and rose through the ranks over nearly four decades. He led operations in Europe and Latin America before being appointed CEO in September 2024, replacing Mark Schneider.

Tasked with reviving consumer spending and refocusing the company on its core brands, he had only been in the role for less than a year.

His dismissal comes at a turbulent time for the maker of KitKat and Nescafe. Nestle's share price has fallen almost 17 per cent since Mr Freixe took over, pressured by slowing sales and shrinking profits. The company is also facing regulatory scrutiny after French authorities raided its offices in July over alleged unauthorised filtration methods in its bottled water business.

The board has now named Nespresso CEO Philipp Navratil as Mr Freixe's successor. 

Mr Navratil, who joined Nestle in 2001 as an internal auditor, has led businesses across Latin America and the global coffee portfolio. He joined the executive board earlier this year.