09-09-2025
Nestlé, the Swiss food giant, fired CEO Laurent Freixe after learning of his relationship with a direct subordinate. Freixe had been CEO for a year but had worked for the company since 1986 in various roles.
An anonymous complaint through the whistleblowing channel triggered an internal investigation. The reporting forum “Tell Us” is a method for employees and other stakeholders to confidentially flag potential violations of company principles, such as conflicts of interest, harassment, or misconduct. Nestlé stated that it did not find evidence to support the complaint during this initial investigation. However, the company received additional complaints about Freixe that pointed to conflicts of interest and favoritism. Nestlé hired outside counsel to conduct a second investigation with a board member overseeing. Freixe denied the relationship “throughout the course of both investigations.”
In its statement, Nestlé’s Board of Directors said it dismissed Freixe with “immediate effect” following its investigation into an “undisclosed romantic relationship with a direct subordinate.” That relationship violated its Code of Business Conduct. Freixe will not receive an exit package. The company stated that its actions showed it took the allegations and investigation seriously. They said they acted “at all times in line with the best practice corporate governance.” Published data shows that Nestlé is struggling with slowing sales and shrinking profits. The French government is also reviewing the company’s alleged “unauthorized filtration methods” for its water products.