Nestlé Dismisses CEO Laurent Freixe Over Inappropriate Relationship With Subordinate
Nestlé, the world's largest food company, has fired its CEO, Laurent Freixe, over an undisclosed romantic relationship with a direct subordinate. This decision came after an internal investigation found the relationship to be in violation of the company's code of business conduct. Philipp Navratil, Nestle's Senior Vice-President, has been appointed to replace Freixe.
Violation of Business Conduct Code
The Swiss multinational, known for brands such as KitKat, Häagen-Dazs ice-cream, and Nespresso coffee capsules, stated this relationship occurred 'in violation of Nestlé's business conduct code', according to the group's president. The details of this relationship, however, have not been disclosed.
Swift Investigation and Immediate Dismissal
The inappropriate relationship came to light following a swift internal investigation. As reported by Folha de S.Paulo, Nestlé dismissed Freixe after it was concluded that he had a secret romantic relationship with a subordinate. South China Morning Post adds that Nestle took the decision to dismiss Freixe from his role as CEO with immediate effect.
Nestlé's Succession Plan
The board has moved quickly to replace Freixe, with Philipp Navratil being named as his successor. Navratil, the former CEO of Nespresso, a Nestlé subsidiary, was appointed by his fellow board members. As stated by The New York Times, Navratil is a longtime employee of the company.
Previous Cases of Workplace Relationships
Japan Times highlights that this incident is not isolated. Several consumer and retail company bosses have lost their jobs over workplace relationships in recent years. This puts a spotlight on the need for clear guidelines and strict adherence to professional boundaries within the corporate environment.
Conclusion
Nestlé's swift response to the situation showcases the company's commitment to its code of business conduct. As reported by La Repubblica, the Swiss multinational deemed the decision to dismiss Freixe as 'necessary'. As Nestlé moves forward under the leadership of Philipp Navratil, it remains to be seen how the company will navigate this change of command and the circumstances surrounding it.