Nestlé CEO fired after relationship with subordinate goes public
In a shock move, Swiss company Nestlé has fired its Chief Executive Officer (CEO) Laurent Freixe for having a romantic relationship with one of his direct subordinates.
Freixe, who took the reins at the multinational food conglomerate a year ago, had failed to disclose their relations to the company.
According to Reuters, the sacking occurred on Monday (1 Sept) and a replacement has already been appointed.
Relationship was a breach of company code
The company first investigated its CEO when they were tipped off via an internal company hotline.
However, the first probe did not yield any conclusive evidence, with Freixe also initially denying the accusations.
It was only when the company contacted a third-party firm that the relationship was confirmed.
Source: Food Navigator
The 63-year-old will not receive an exit package following his dismissal.
“This was a necessary decision,” said Chairman Paul Bulcke, who led the investigation.
“Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service.”
Move comes amid company struggles
To replace Freixe, Nestlé has appointed Philipp Navratil who headed the Nespresso coffee unit.
However, the move comes at a time when Nestlé is struggling.
According to Reuters, the food and drink conglomerate’s shares have fallen 17% over the past year, falling short of its rivals.
In a similar incident earlier this year, Astronomer CEO Andy Byron was also sacked after he was caught cheating at a Coldplay concert with the company’s human resources (HR) Lead.
Also read: Astronomer CEO & HR lead reportedly put on leave after getting caught embracing on Coldplay kiss cam
Astronomer CEO & HR lead reportedly put on leave after getting caught embracing on Coldplay kiss cam
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Featured image adapted from The Grocer and Food Navigator.
