Bad year for CEOs hiding relationships: Nestle fires chief over secret office romance

VEVEY: Nestle has dismissed Chief Executive Laurent Freixe with immediate effect after he failed to disclose a romantic relationship with a direct subordinate, according to a report by the BBC.

The Swiss food company, known for producing Kit Kat and Nespresso, stated that the dismissal followed an internal investigation led by Nestle Chair Paul Bulcke and independent director Pablo Isla. The inquiry was prompted by a report submitted through the company’s whistleblowing channel.

Also read: Gwyneth Paltrow crashes Coldplay-linked Astronomer scandal with a smirk

In a statement, Bulcke said, “This was a necessary decision. Nestle’s values and governance are strong foundations of our company. I thank Laurent for his years of service at Nestle.”

The BBC reported that the employee involved was not a member of the executive board. The relationship was considered a conflict of interest, triggering the investigation. An initial internal inquiry reportedly did not substantiate the claims, but further concerns led to a second investigation, which involved external legal counsel. That investigation upheld the allegations, according to the BBC.

A Nestle spokesperson told the BBC, “We acted at all times in line with best practice corporate governance. The external investigation was opened shortly after the initial internal investigation, and today’s decision shows that we are taking allegations and investigations seriously.”

Nestle said that Freixe denied the relationship throughout both investigations. He had been with the company for nearly 40 years and was appointed CEO in September of the previous year, succeeding Mark Schneider. The company confirmed Freixe would not receive an exit package. The BBC said it had contacted Freixe for comment.

Philipp Navratil, who joined Nestle in 2001, has been named as Freixe’s replacement. Bulcke said the company’s strategy and performance targets remain unchanged. Bulcke is expected to step down as chair next year. Pablo Isla, the former head of Inditex, has been proposed as his successor.

Also read: Astronomer CEO Andy Byron caught red handed at Coldplay concert

According to the BBC, other major companies have also seen CEOs depart over similar matters. BP’s Bernard Looney resigned after not being fully transparent about personal relationships with colleagues. McDonald’s dismissed Steve Easterbrook in 2019 for having a relationship with an employee, and later recovered his severance package after additional relationships were discovered. He was fined by US regulators in 2023.

Nestle has not released further details regarding the case.

ASTRONOMY CEO FLASHBACKS?

Last month, another CEO had made headlines for being caught red handed, in a relationship with his employee. The CEO of software company, Astronomer, Andy Byron found himself in the center of a controversy when the ‘Kiss cam’ at a Coldplay concert panned at Andy, and he was caught in a moment too cosy for colleagues, with his chief of Human Resources, Kristin Cabot.

Coldplay’s Chris Martin said “Oh, look at these two…” when he saw the supposedly cute moment, but did not waste any moment when Andy Byron ducked, saying, “Either they’re having an affair or they’re very shy.”

However, by then it was already too late. Byron’s wife, Megan Kerrigan, shared the clip on her social media and removed the Byron surname from her profile, further fueling the discourse.

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