Laurent Freixe, CEO of Nestlé, based in Switzerland, has been abruptly dismissed just one year after taking on the role due to an “office romance.”
On the 1st (local time), Nestlé announced via a press release that the board had immediately dismissed CEO Freixe and appointed Philipp Navratil, who oversees the Nespresso coffee brand, as his successor.
Nestlé added that Freixe’s resignation followed an investigation into his involvement in a secret romantic relationship with a subordinate, which violated the company’s code of conduct.
Freixe had succeeded former CEO Mark Schneider in September last year, following Schneider’s dismissal due to poor performance. Despite Schneider, an unusual appointment from outside the company, having led the company in a new direction for about eight years, Freixe was considered a stabilizing force capable of restoring the company’s traditional strengths and was chosen as his successor.
Freixe, who has been with Nestlé since 1986, was praised for his management skills during the global financial crisis in 2008 and had successfully managed the company’s European and American operations for over a decade.
Nevertheless, Nestlé’s current stock price remains about 30% lower compared to the beginning of 2022. The sudden CEO change is expected to cause turmoil within the management, according to the Wall Street Journal (WSJ).
This dismissal of Nestlé’s CEO is reminiscent of the resignation of Andy Byrom, CEO of Astronomer, who was embroiled in an affair scandal at a Coldplay concert. Byrom, along with the company’s Chief People Officer Christine Cabot, was spotted embracing each other on the concert’s big screen in Boston, Massachusetts, capturing public attention. Once they noticed themselves on the screen, they quickly separated and covered their faces, but the moment had already been widely shared.
The video rapidly spread through social media platforms like TikTok, and netizens soon uncovered their identities. Subsequently, Astronomer announced Byrom’s suspension on the 18th, followed by Byrom’s resignation the next day. Cabot also submitted her resignation shortly thereafter.