Nestlé CEO Fired Amidst Allegations of Improper Conduct

In May, allegations surfaced against Nestlé's former CEO, Laurent Freixe, concerning improper favoritism towards an employee. The complaints were brought forward by Nestlé staff, as confirmed by Chief Financial Officer Anna Manz. These revelations followed Freixe's dismissal, which occurred exactly a year after he assumed the CEO position.

The initial complaint, received through Nestlé's internal reporting system, "Speak Up," alleged a romantic relationship and improper favoritism. An internal investigation was conducted, but no evidence was found. Freixe himself denied the allegations. However, further complaints prompted a second, more extensive inquiry, involving Swiss lawyers.

This second investigation uncovered information that led the board to believe a breach of conduct had occurred, resulting in Freixe's dismissal. He denied the relationship throughout both investigations and will not receive an exit package.

The dismissal of the long-time company veteran has been described as a significant crisis for Nestlé. Philipp Navratil, the former Nespresso boss, has replaced Freixe. Manz believes Navratil will bring a fresh perspective to the company. He has spent many years at Nestlé, primarily in the coffee business, and joined the executive board recently.

Nestlé denied reports that Manz's appearance at the investor conference was hastily arranged. The company stated that Freixe was also scheduled to attend before his dismissal. The company has faced challenges since the tenure of Freixe's predecessor, who was fired due to the company's slow post-pandemic recovery.

Manz explained that Navratil's quick appointment was possible because the Nestlé board had already begun succession planning. Navratil is expected to be present for the company's third-quarter results and will likely meet with investors beforehand.