September 3, 2025 | Dubai, UAE: The Nestle CEO Fired decision is representative of the company’s strict compliance with its code of business conduct and its zero-tolerance policy towards any cases of non-disclosure of conflicts of interest. Nestle has taken a drastic decision about its leadership by ousting its Chief Executive Officer, Laurent Freixe, right after it was revealed that he didn’t disclose his romantic relationship with a subordinate. Made on Monday, the news comes exactly one year after his promotion to head the Swiss food conglomerate, which counts among its global brands KitKat and Nesquik. 

The board was very clear that no severance pay would be given to Freixe on his walking away, while Nestle CEO fired. The decision came after quite a while of probing. Initially, the investigation was not clear on wrongdoing, but a second one led by Chairman Paul Bulcke and Lead Independent Director Pablo Isla, together with external help, was able to confirm the misconduct. Nestle disclosed that a tip-off from an employee via an internal hotline in spring, the time when the company had the first suspicions, was the trigger for the immediate action taken of the Nestle CEO fired.

Philipp Navratil, a person with a lot of experience who was at the head of the Nespresso coffee division, has been officially informed that he is the new CEO and that the leadership should be followed by him starting from now on. Nestle, in a statement, said that it had confidence that Navratil was the perfect person to overcome the obstacles and continue with the project in the long run.

Chairman Paul Bulcke said, “It required a tough call but was the right call. The values and way of life at Nestlé are two things that will always be important. Laurent Freixe did his best for the company, and I am thankful to him.”

Investigation Confirms Misconduct and Triggers Leadership Change in Nestle CEO Fired

During a tough ride, Nestle CEO fired in the consumer market with the enactment of trade tariffs in the US, negatively affecting the supply chain and operational costs. Experts argue that the Nestle CEO Fired incident could be seen as another factor that destabilizes the firm, especially because it is on the verge of regaining shareholder trust after the drop in stock prices by 17% over the last year, worse than the competitor’s and market’s trend.

The company’s clear governance position is shown by agreeing to have him leave without an exit package. Thus, this is the second CEO removal in a row for Nestlé, considering that Mark Schneider was dismissed last year. A statement from JP Morgan’s analysts says this recent reshuffle widens the question of where the company is going in the medium term, but they are reassured as to management’s commitment to the current strategy and its targets.

Continuity in Strategy Amid Global Management Scrutiny

Despite the Nestle CEO Fired episode, the organization restates that the company strategy is still in place. Philipp Navratil, who was an internal auditor when he began his Nestlé career in 2001, has, in fact, been with the company for a very long time. He held many commercial roles in Central America, including country manager for Nestlé Honduras in 2009, and after that, he was in charge of the coffee and beverage business in Mexico. In 2020, he moved to the Coffee strategic business unit at Nestlé and in July 2024, he became the Nespresso division leader.

On 1 January 2025, Navratil became a member of the Nestlé executive board, and his immediate appointment as CEO signifies that the company is determined to carry on with the same business but at the same time to be in control and accountable. The board made it clear that getting rid of Laurent Freixe was the right thing to do to live up to the corporate values and to regain the trust of stakeholders.

The transition in leadership at Nestlé stands in contrast to the Nestle CEO Fired development, which is indicative of the corporate governance trend wherein openness, ethical behavior, and prompt corrective action are still the key elements to be able to hold on to the confidence of investors and reputation of the brand in a global market, which is increasingly under scrutiny.

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