Nestlé removed its Chief Executive Laurent Freixe on Monday after finding he violated the company’s code of conduct. He failed to disclose a romantic relationship with a subordinate employee. The Swiss food giant said the dismissal was effective immediately.

Whistleblower Complaint Triggered Probe

The decision followed both internal and external investigations, led by Chairman Paul Bulcke and Lead Independent Director Pablo Isla. According to a BBC report, the probe began after a complaint was filed through Nestlé’s whistleblowing system. The inquiry confirmed the breach as a conflict of interest.

Philipp Navratil Named New CEO

Nestlé moved quickly to fill the leadership gap. The company appointed Philipp Navratil, who earlier led its Nespresso coffee unit, as the new CEO. His appointment also took effect immediately. The change comes during a difficult time, as the company struggles with weaker consumer demand and pressure from new U.S. tariffs.

Freixe’s Short Tenure Ends Abruptly

Freixe became CEO only in September last year, after the departure of Mark Schneider. He had worked at Nestlé for more than 40 years. Despite his long service, the company confirmed that he will not receive any exit package.

Chairman Defends Decision

Chairman Paul Bulcke said in a statement, “This was a necessary decision. Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service." The company clarified that the relationship did not involve anyone from the executive board, but the undisclosed nature created a conflict of interest.

Company Reaffirms Governance Standards

A Nestlé spokesperson stressed that the process followed best practices. “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," the spokesperson said.

Part of Wider Scrutiny on Corporate Leaders

This episode comes amid rising global attention on corporate leadership conduct. In July, Astronomer CEO Andy Byron resigned after being filmed in an intimate moment with an employee at a Coldplay concert. Nestlé itself is also heading into a transition, as longtime chairman Paul Bulcke has announced plans to step down next year.