When Nestlé, the world’s largest food company, abruptly fired its chief executive Laurent Freixe over Labor Day weekend in early September 2025, the move sent ripples through boardrooms, markets, and social media alike. Freixe’s dismissal, effective immediately, came after an internal and external investigation revealed he had failed to disclose a romantic relationship with a direct subordinate—a clear violation of the Swiss food giant’s code of conduct. The episode, unfolding less than a year after Freixe’s appointment, has not only raised questions about leadership at Nestlé, but also signaled a broader shift in how global corporations handle executive misconduct.
The story began with an anonymous tip to Nestlé’s internal whistleblowing platform, ‘Speak Up’, flagging concerns about Freixe’s relationship with a marketing executive who reported directly to him. According to Newsweek, the initial internal inquiry produced inconclusive findings. However, the persistence of additional hotline reports and a letter addressed to the chairman prompted a full-scale investigation, this time with input from independent outside counsel. Freixe and the subordinate initially denied any relationship, but after thorough review, the board concluded that Freixe had breached company policy.
“This was a necessary decision. Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service at Nestlé,” said Chairman Paul Bulcke in a statement quoted by Newsweek and echoed across several outlets. The board’s message was unambiguous: no employee, not even the CEO, is above company rules. Nestlé’s code of conduct specifically prohibits undisclosed direct reporting relationships between family members, partners, or close associates, and requires indirect reporting lines to be declared and assessed.
Freixe, 63, had been with Nestlé for nearly four decades, rising through the ranks after joining in 1986. His career spanned roles in marketing and sales, and he led operations in Hungary, the Iberian Region, Zone Europe, and Zone Americas. Known for his commitment to sustainability—championing efforts like achieving zero waste to landfill in Nestlé’s factories across the Americas—Freixe was appointed global CEO in September 2024, replacing Mark Schneider. His tenure, however, proved short-lived, marked by a focus on core brands such as Nescafé, KitKat, and Fancy Feast, as well as cost-cutting and executive team restructuring at the company’s Lake Geneva headquarters.
The consequences of Freixe’s undisclosed relationship were swift and severe. Not only was he dismissed with immediate effect, but, as reported by the BBC and Fortune, he received no severance package—a rarity in the upper echelons of corporate leadership. Corporate governance expert Nell Minow told Fortune, “That is really unusual. I think that’s actually a badge of success for corporate governance, because that’s something investors have been concerned about for a long time: CEOs being dismissed and somehow getting to stay on.”
Historically, top executives caught in ethical breaches have often walked away with multimillion-dollar payouts. Steve Easterbrook, the former chief executive of McDonald’s, left with $40 million after a similar relationship was uncovered, only for McDonald’s to later claw back $105 million after further misconduct came to light. Adam Neumann of WeWork received $445 million despite his controversial tenure, while Dennis Muilenburg of Boeing departed with more than $60 million in stock options after two fatal plane crashes. Minow pointed out that boards have not always applied standards consistently, but social media and public scrutiny are now forcing directors to act decisively. “There has been bad behavior in the boardroom for a long time,” she said. “But partly because of social media, partly because of the way things get out, the board is under more pressure to respond.”
Nestlé’s approach to policing conduct is not new. In 2024 alone, the company received over 3,000 conduct-related reports, substantiated 644 cases, and saw 119 employees leave as a result, according to reporting by The Wall Street Journal. The company’s policy of requiring disclosure of personal relationships is designed to prevent conflicts of interest and maintain trust at every level. The board’s decision to fire Freixe without a golden parachute signals that reputational risk is now treated with the same seriousness as financial risk—a message not lost on investors or the broader business community.
The leadership shakeup comes at a challenging time for Nestlé. The company is facing financial pressures from higher commodity costs and tariffs, as well as ongoing management transitions. Chairman Paul Bulcke has announced he will not seek reelection in 2026, and earlier this year, Zone Americas chief Steve Presley retired. To steady the ship, the board has appointed Philipp Navratil, a 49-year-old Nestlé veteran who joined the company in 2001 and most recently led the Nespresso division, as the new CEO. Navratil, who has held senior roles across Central America and the coffee business, has pledged to continue Freixe’s strategic direction while restoring confidence after a series of executive departures and a multi-year slide in share prices.
Yet, the fallout from Freixe’s removal extends beyond Nestlé’s own corridors. The incident has drawn comparisons to similar cases at other major corporations. In the summer of 2025, tech firm Astronomer faced its own crisis when CEO Andy Byron resigned after being caught on a concert “kiss cam” with the company’s HR head. The board’s swift action—placing both individuals on leave and accepting Byron’s resignation—underscored the non-negotiable standards now applied to leadership ethics, especially under the glare of social media. As Fortune noted, the reputational fallout from bad behavior can be brutal, with companies seeing online reviews and public trust collapse almost overnight.
Analysts remain skeptical about how quickly Nestlé can restore investor trust. “This is unlikely to restore trust in the company,” said Jean-Philippe Bertschy of Swiss firm Vontobel, as quoted in several reports. The broader trend, however, is unmistakable: boards are increasingly docking bonuses, terminating CEOs “for cause,” and moving quickly to contain reputational damage. Still, as Minow warned, inconsistencies remain, and if employees see hypocrisy in how boards handle CEO misconduct versus middle managers, it can undermine efforts to improve corporate culture.
For now, Nestlé’s board has made clear that its strategic course will continue unchanged, even as it prepares for further leadership transitions. The company’s swift, public action in the wake of the Freixe affair may mark a turning point in global corporate governance—one where transparency, accountability, and reputational risk are no longer negotiable, even at the highest levels. As the dust settles, Nestlé and its new CEO face the daunting task of rebuilding trust, both inside and outside the company, in an era where the world is always watching.
