Nestle CEO Laurent Freixe's Removal Explained: Is the Identity of His Subordinate Revealed?

Nestlé announced on Monday that Chief Executive Officer Laurent Freixe has been ousted following an internal probe that uncovered his undisclosed relationship with a subordinate employee.

The decision was made by the company's board at its headquarters in Vevey, Switzerland, following a probe led by Chairman Paul Bulcke and Lead Independent Director Pablo Isla. The removal, effective immediately, came with no exit package or severance pay, as the board ruled that Freixe had breached Nestlé's code of conduct.

Nestlé stated that the action was necessary to protect its governance standards and to reaffirm its commitment to corporate values.

Identity of the Subordinate – What Is Known

One of the most searched questions surrounding the scandal is the identity of the subordinate with whom Freixe had the relationship. Nestlé has not disclosed personal details, citing legal and privacy reasons.

The company has maintained that the matter is a violation of Nestlé's Code of Business Conduct rather than an issue of performance or business impact.

The lack of official information has fuelled speculation online, with searches for 'Nestle CEO Laurent Freixe subordinate identity' rising sharply.

At present, no verified reports have confirmed who the subordinate is, and Nestlé has declined to elaborate further.

New Leadership at Nestlé

In the wake of Freixe's dismissal, Nestlé appointed Philipp Navratil as the new CEO, effective immediately.

Navratil, who joined the company in 2001, was previously head of the Nespresso business and had also overseen Nestlé's global coffee strategy, including Nescafé and Starbucks licensing. In January 2025, he was named to the company's Executive Board, a move that positioned him for broader leadership.

Navratil's appointment marks the second time in a year that Nestlé has replaced its top executive, following the departure of former CEO Mark Schneider in 2024.

Market and Investor Reaction

Nestlé's leadership turbulence has raised concerns among investors. Shares have declined by around 17% in the past year, underperforming against other global food and beverage peers. Market analysts note that such instability at the top has contributed to uncertainty, though Nestlé has reassured shareholders that its strategic direction remains unchanged.

The company emphasised that its focus on growth, efficiency, and innovation will continue under Navratil's leadership.

Who is Laurent Freixe?

Laurent Freixe, born in Paris in 1962, earned an MBA from EDHEC Business School in 1985 before joining Nestlé a year later. He built a career across multiple regions and divisions, from launching successful frozen food products in France to leading European operations through the global financial crisis.

Freixe later held senior roles in the Americas and Latin America, where he pushed expansion in emerging markets. He was named CEO on 1 September 2024, and he reintroduced Nestlé's '60/40 rule' for product launches, emphasising innovation as a driver for growth.

His tenure, however, ended abruptly exactly one year later, making it one of the shortest CEO terms in Nestlé's modern history.

Corporate Governance in Focus

The dismissal of Freixe has highlighted the importance of corporate governance and accountability at the highest levels of global companies.

Nestlé has faced two CEO removals in consecutive years, intensifying scrutiny of its leadership structure. The decision to remove Freixe without compensation underscores the seriousness with which the board is addressing breaches of conduct.