Revealed: Real reason Nestlé dismissed CEO Laurent Freixe

Laurent Freixe was removed from the top job at Nestlé because of an “undisclosed romantic relationship with a direct subordinate”. It was the company’s anonymous reporting platform Speak Up that first raised the alarm.

Journalists in Switzerland, where Nestlé’s headquarters is based, could be forgiven for missing an email sent to their inboxes on September 1 at 7pm, well outside regular Swiss working hours. It was a press release announcing the dismissal of Nestlé CEO Laurent Freixe exactly a year after he was appointed to lead the company.

“Nestlé Board appoints Philipp Navratil as CEO following the departure of Laurent Freixe,” read the headline of the press release. Only in the second paragraph was the reason behind Freixe’s termination revealed.

“The departure of Laurent Freixe follows an investigation into an undisclosed romantic relationship with a direct subordinate which breached Nestlé’s Code of Business Conduct,” it said.

According to a Nestlé spokesperson, Freixe was not dismissed for having a relationship with a junior colleague but for failing to report it, as required by Nestlé’s Code of Business Conduct. The company implements mandatory conflict of interest declaration campaigns and employees are required to disclose any potential conflict of interest that could harm both the employee’s and Nestlé’s reputation.

According to media reports, Freixe only made the matter worse by denying the existence of the relationship, which was later confirmed by a second probe, to the company’s board of directors.

“Nestlé has strong values and expects everyone, including senior leadership, to live up to them,” the Nestlé spokesperson told Swissinfo.

Thus ended an impressive career with Nestlé that began in 1986 in France and saw Freixe lead Nestlé’s Europe, Americas and Latin America zones, as well as sit on the food giant’s executive board for 17 years.

Speak Up

But how did Freixe’s relationship with his subordinate reach the attention of Nestlé’s board of directors in the first place? Workplace romances do not go unnoticed for long. Someone in the company eventually finds out. However, the journey from office gossip to official complaint can be a long one, especially when it directly implicates the CEO.

This is where Nestlé’s internal and external complaint reporting platform Speak Up comes in. In place since 2021, Speak Up allows employees to confidentially – and, more importantly, anonymously – raise issues via a global hotline.

In 2024 Nestlé received 3,218 complaints through Speak Up, 12% more than in 2023. But 7% fewer complaints were substantiated, leading to the dismissal of 119 employees.

It was through complaints made via Speak Up that Freixe’s indiscretions were first flagged to higher-ups and the process began that would eventually lead to the CEO’s dismissal.

“Anonymous reports were submitted through Speak Up, Nestlé’s independent global reporting channel, in May 2025. The Board acted immediately on receiving the information,” confirmed the Nestlé spokesperson. “In line with best corporate governance practice, the company conducted a rigorous and thorough internal and external investigation, with the support of independent outside counsel.”

Speak Up can be accessed through Nestlé’s corporate websites, QR codes, web forms and a dedicated phone line. The Speak Up whistleblowing system is independently operated by a third party.

Every complaint made through Speak Up must be acknowledged within five working days. As a first step, a regional compliance officer assesses the complaint and investigates the incident. Depending on the sensitivity of the matter (there are 11 priority criteria, including if executive board members or senior managers in Switzerland are involved), it can be escalated and handed over to Group Compliance at Nestlé headquarters. It generally takes about 90 days to conclude an investigation, but complex issues such as bribery and anti-trust can take longer. After the investigation, a decision is taken on whether to take disciplinary action and a final reply on the outcome is communicated to the complainant.

-Swissinfo.ch