Nestlé Fires CEO Over Undisclosed Romantic Relationship

Nestlé has dismissed its CEO Laurent Freixe following an internal investigation that revealed an undisclosed romantic relationship with a direct subordinate, violating the company's code of business conduct. Freixe, who became CEO in September 2024 after nearly 40 years with the company, was replaced by Philipp Navratil, the current CEO of Nespresso, who has a strong track record within Nestlé’s global operations. The leadership change comes amid ongoing challenges for Nestlé, including a significant drop in share value over five years, underperformance in its vitamins division, and pressure to revive growth amid rising commodity costs and weak demand in key markets like China. Nestlé’s board emphasized that the decision was necessary to uphold the company’s values and governance, aiming to stabilize the firm and reassure investors. However, investor confidence remains cautious as the company has yet to present a clear strategy to address its performance issues and the recent executive turmoil has heightened uncertainty. Navratil’s appointment signals a desire for continuity and renewed focus on growth and efficiency, but the company faces the challenge of restoring stability and shareholder trust.