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| Laurent Freixe and Nestlé |
VEVEY, SWITZERLAND – In a sudden and dramatic corporate shake-up, Nestlé, the world's largest food and beverage company, has fired its Chief Executive Officer, Laurent Freixe, for violating the company's code of conduct by having an undisclosed romantic relationship with a direct subordinate.
The Swiss conglomerate announced the immediate dismissal on Monday, citing the results of an internal investigation. The board has appointed veteran company executive Philipp Navratil as its new CEO to steer the company forward.
A Breach of Corporate Governance
The decision underscores the stringent ethical standards major corporations are enforcing at the highest levels. According to an official statement from Nestlé, the investigation was initiated by the Board of Directors and overseen by Chairman Paul Bulcke and Lead Independent Director Pablo Isla, with support from independent outside counsel.
In a statement, Nestlé Chairman Paul Bulcke emphasized that the decision, while difficult, was necessary to uphold the company's core principles.
“Nestlé’s values and governance are strong foundations of our company,” stated Mr. Bulcke. The dismissal signals the board's zero-tolerance approach to violations of its ethical codes, even from its most senior executive.
The board moved swiftly to name a successor, appointing Philipp Navratil, a long-serving Nestlé executive with over two decades of experience within the company. Chairman Bulcke expressed strong confidence in the new leader.
“I am pleased to announce Philipp Navratil as CEO. Philipp is recognized for his impressive track record of achieving results in challenging environments,” said Mr. Bulcke. “Renowned for his dynamic presence, he inspires teams and leads with a collaborative, inclusive management style.”