Nestlé fires CEO over undisclosed relationship

Nestlé has fired its chief executive Laurent Freixe after just one year in the job following an investigation into an undisclosed "romantic relationship", ousting its second chief executive in a year.

Freixe was replaced by Nespresso chief Philipp Navratil, a rising executive at the world's largest packaged food company, which has seen sales slow at its core businesses since the pandemic.

Shares in the maker of Nescafé coffee and KitKat chocolate bars fell 1% following Freixe's sudden resignation, which comes a year after his predecessor, Mark Schneider, was fired for poor performance.

Freixe's dismissal follows an investigation into an undisclosed romantic relationship with a person directly reporting to him that violated Nestlé's code of business conduct, Nestlé said on Monday.

The company said concerns about a possible relationship were raised by staff through an internal company hotline, though an initial investigation proved unsubstantiated. Freixe had initially denied the relationship to management, a company spokesperson said.

When staff concerns persisted, Nestlé said it ordered an investigation overseen by Chairman Paul Bulcke and Lead Independent Director Pablo Isla, with the support of independent outside counsel.

Freixe, who spent 39 years at Nestlé, will not receive any exit package following his departure, the company told Reuters.

The Nestlé veteran's abrupt departure comes a year after Schneider's departure and two and a half months after Chairman Paul Bulcke announced he would step down in 2026, amid one of the most turbulent periods in the company's 159-year history.

In a brief statement, Bulcke thanked Freixe for his years of service to Nestlé, but said the dismissal was a "necessary decision."

Freixe was not immediately available to comment when contacted by email.

(Writing by Dave Graham and John Revill; additional reporting by Oliver Hirt)

((Translation by Barcelona Editorial Team))

REUTERS MS