Nestlé CEO Laurent Freixe Dismissed After Conduct Breach; Philipp Navratil Takes Helm

Nestlé has made the decision to dismiss its CEO, Laurent Freixe, following an internal investigation into a breach of the company’s code of business conduct. The investigation, led by Chairman Paul Bulcke and Lead Independent Director Pablo Isla, concluded that Freixe was involved in an undisclosed romantic relationship with a direct subordinate, violating corporate conduct guidelines. This decision underscores Nestlé's commitment to maintaining its core values and governance structure, which Bulcke emphasized in a formal statement, attributing strong foundations to the company’s operations and principles.

Freixe, who had assumed the role of CEO in September of the previous year after the company ousted Mark Schneider, saw his leadership come to an abrupt end. With his departure, Nestlé introduced Philipp Navratil as the newly appointed CEO. Navratil began his tenure with Nestlé in 2001, initially serving as an internal auditor before taking on various commercial responsibilities in Central America. His career trajectory saw him become the Country Manager for Nestlé Honduras in 2009, and he later led the coffee and beverage business in Mexico starting in 2013. Navratil was instrumental in bolstering the Nescafé brand and was eventually appointed to the Nespresso unit in July 2024, joining the Nestlé Executive Board at the beginning of this year.

The restructuring at the top level was a measure to safeguard the integrity of corporate governance at Nestlé. As the company transitions under new leadership, Navratil’s ascendancy brings with it a wealth of experience and a dynamic management style. Known for his capacity to drive results and foster team inspiration through a collaborative approach, Navratil assumes the CEO role with the confidence of the Board to sustain and propel the company’s strategic initiatives and efficiency plans. Paul Bulcke expressed optimism about the future, stating that Nestlé would not waver on its strategic course nor would it slow in its performance momentum.

Navratil himself has articulated his commitment to continuing Nestlé’s strategic direction, emphasizing his dedication to propelling the company's performance enhancements. As he steps into his new role, Navratil is set to collaborate closely with the leadership team, Chairman Paul Bulcke, and Chairman-Designate Pablo Isla to ensure a seamless execution of the company's value creation plans.

This shift marks an essential phase in Nestlé's leadership evolution, with a clarion call to all stakeholders that the firm remains steadfast in its ethical commitments and strategic pursuits. The company has not disclosed additional details surrounding the circumstances of Freixe’s conduct but has made clear that the decisions taken are in the best interest of upholding corporate values and ensuring trust across all levels of the organization.