How an anonymous hotline tip led to the dismissal of Nestle CEO Freixe

Nestle has dismissed its chief executive, Laurent Freixe, following an internal investigation. Philipp Navratil has been appointed the new CEO to lead the company forward

Nestlé on Tuesday dismissed its chief executive, Laurent Freixe, with immediate effect after an internal investigation found he had failed to disclose a romantic relationship with a direct subordinate, a violation of the company’s code of conduct. 

Veteran executive Philipp Navratil, 49, has been appointed as the new CEO. Navratil, who joined Nestlé in 2001, most recently led the Nespresso division and has held senior roles across Central America and the company’s coffee business. 

“This was a necessary decision,” said Chairman Paul Bulcke, emphasising that Nestlé’s values and governance remain its strongest foundations.

How the investigation unfolded

Freixe’s removal followed an anonymous tip to Nestlé’s internal hotline, ‘Speak Up’, reporting a relationship with a marketing executive who reported directly to him. The pair initially denied any relationship, according to The Wall Street Journal. 

The company carried out two separate investigations, received additional hotline reports, and reviewed a letter to the chairman before dismissing Freixe for violating the code of conduct. 

Corporate conduct and policy enforcement

Nestle’s decision emphasises that no employee is above company rules. Reports received last year through the ‘Speak Up’ line led to more than 100 staff departures. 

The company’s policy requires employees to disclose personal relationships to prevent conflicts of interest. In 2024 alone, Nestle received over 3,000 conduct reports, substantiated 644 cases, and saw 119 employees leave as a result, the news report said. 

Navratil now faces the challenge of stabilising the company, addressing a multi-year slide in share prices, and restoring confidence after a series of executive departures. While he has not led a major regional operation like his predecessor, Navratil has pledged to continue Freixe’s strategic direction.   

Workplace relationships face investor scepticism

Freixe’s departure follows a pattern of top executives leaving due to relationships breaching company rules, including BP CEO Bernard Looney and Kohl’s CEO Ashley Buchanan. 

In Europe, workplace relationships have traditionally been more private, but scrutiny has increased since the #MeToo movement. Analysts note that such incidents may affect investor trust. “This is unlikely to restore trust in the company,” said Jean-Philippe Bertschy of Swiss firm Vontobel, as quoted by the news report.

Freixe’s leadership and controversies

Freixe, 63, joined Nestlé in 1986 and became CEO in September 2024. During his brief tenure, he focused on core brands such as Nescafé, KitKat, and Fancy Feast, cutting costs to invest in products like cold coffee and strengthening the executive team at the Lake Geneva headquarters. 

He had previously criticised his predecessor, Mark Schneider, for over-diversification and relocated regional business heads to Switzerland, which stirred internal debate.