Nestlé Fires CEO Laurent Freixe Over Code of Conduct Breach
Internal probe confirms undisclosed relationship with subordinate; Philipp Navratil appointed as new CEO effective immediately.
Zurich, September 1 EST: Nestlé has sacked Chief Executive Laurent Freixe after just a year in the job, an unusually public rebuke for a company that prizes stability. The board said Freixe failed to disclose a romantic relationship with a subordinate, a breach of Nestlé’s code of conduct that forced his immediate exit.
One Year In, One Year Out
Freixe, a 39-year Nestlé veteran, took over as CEO in September 2024 with a mandate to push margins higher and steady the ship after years of uneven sales growth. By September 2025, he was gone, undone not by a botched acquisition or a poor earnings cycle, but by a personal lapse that Nestlé said it could not overlook.
For a company of Nestlé’s size and heritage, this is rare. It is the kind of scandal that tends to hit Silicon Valley startups or Wall Street banks, not a 158-year-old food giant whose brand rests on discipline and predictability.
Navratil Takes the Helm
The board wasted no time naming Philipp Navratil, most recently CEO of Nespresso, as Freixe’s replacement. Navratil, who joined Nestlé in 2001 as an internal auditor, has built his career around coffee a division that has consistently outperformed the group’s packaged food business. His appointment is less about a strategic pivot and more about sending a message the board wants continuity, not reinvention.
Navratil told employees and investors he intends to stick to Nestlé’s existing strategy. The emphasis, he said, will be on execution keeping margins tight and finding growth where consumers are still willing to pay a premium.
Governance Over Loyalty
The dismissal reflects a clear choice by Chairman Paul Bulcke and lead independent director Pablo Isla. In the past, European boards have sometimes looked the other way when star executives slipped up. This time, Nestlé opted for enforcement over loyalty.
Bulcke called the move “necessary,” a word that in corporate shorthand signals no debate and no room for compromise. In practice, it shows Nestlé is acutely aware of how governance failures can ripple into investor confidence. Allowing a breach at the very top would have undercut the standards expected of its 270,000 employees worldwide.
Markets Watching Closely
The Financial Times noted that the timing couldn’t be trickier. Nestlé has been under fire for sluggish organic sales and a product portfolio that critics say is too reliant on processed foods. Analysts had been waiting to see how Freixe would reframe the group’s strategy. Instead, they got a boardroom scandal and a handoff to a new CEO.
Still, the market reaction was measured. Navratil is well-known internally and seen as a steady operator. Investors appear to prefer a quiet insider to the drama of a drawn-out search. As one analyst put it, Nestlé’s problem is execution, not vision and Navratil’s background in coffee suggests he knows how to run a tight business line.
The Road Ahead
The immediate question is whether Navratil can calm nerves and keep Nestlé’s momentum from slipping further. He inherits a company in transition cutting costs, rebalancing its portfolio, and facing pressure from regulators and health advocates over nutrition standards.
That said, the bigger signal may be cultural. Nestlé is making it clear that its code of conduct applies at every level, even the C-suite. In an era when investors punish companies as much for governance failures as for missed earnings, the board appears determined not to test the market’s patience.
For now, Nestlé insists strategy won’t change. But investors will be listening closely at the next earnings call to see if Navratil can deliver more than continuity.
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A Wall Street veteran turned investigative journalist, Marcus brings over two decades of financial insight into boardrooms, IPOs, corporate chess games, and economic undercurrents. Known for asking uncomfortable questions in comfortable suits.
