"According to Reuters, concerns about a possible relationship first surfaced in the spring through the company's internal reporting channel "Speak Up." A board-led investigation followed, during which Freixe had denied the relationship. Staff concerns persisted, prompting another investigation overseen by Chairman Bulcke and Lead Independent Director Isla and independent outside counsel. This time around, investigators found what they believed to be evidence of a romantic relationship with a direct subordinate."
"This relationship violated Nestlé's code of business conduct, and as reported by Fox Business News, the breach led to Freixe's immediate removal after just one year in the role. He was not awarded any exit compensation. "This was a necessary decision. Nestlé's values and governance are strong foundations of our company," Chairman Paul Bulcke said. "I thank Laurent for his years of service at Nestlé." Nestlé installed Philipp Navratil, previously head of the Nespresso division, as the new CEO."
Nestlé dismissed CEO Laurent Freixe after investigators found evidence of an undisclosed romantic relationship with a direct subordinate. Initial concerns emerged through the company's internal "Speak Up" channel in the spring, and Freixe denied the relationship during a board-led investigation. Persistent staff concerns led to a subsequent probe overseen by Chairman Paul Bulcke, Lead Independent Director Isla, and independent outside counsel that concluded the relationship began in 2022 when Freixe headed Nestlé's Latin America business. The relationship breached Nestlé's code of business conduct, resulted in immediate removal without exit compensation, and led to the appointment of Philipp Navratil as CEO. The company has also faced financial declines, including a 17% share drop during Freixe's tenure and an almost one-third fall over five years.
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