Nestlé has dismissed Chief Executive Officer (CEO) Laurent Freixe after an investigation into an undisclosed romantic relationship with a direct subordinate which breached the company’s code of conduct.
The multinational food giant said Philipp Navratil had been appointed as CEO with immediate effect.
"This was a necessary decision. Nestlé's values and governance are strong foundations of our company. I thank Laurent for his years of service at Nestlé," Chairman Paul Bulcke said in a press release.
Concerns about a possible relationship between Freixe and a direct report emerged through an internal company hotline, but as an initial probe was inconclusive, a second investigation was launched, Reuters reported a company spokesman as saying.
The Board ordered the investigation overseen by Bulcke and Lead Independent Director Pablo Isla, with the support of independent outside counsel.
Freixe, who denied the relationship, will not receive an exit package after his dismissal, according to the Reuters story.
Bulcke said Navratil had an impressive track record of results in challenging environments, and the Board was confident he would drive Nestlé’s growth plans and accelerate efficiency efforts.
“We are not changing course on strategy and we will not lose pace on performance,” Bulcke said.
Navratil, who began his career with Nestlé in 2001 as an internal auditor, said he was honoured by the trust the Board had placed in him.
“I fully embrace the company's strategic direction, as well as the action plan in place to drive Nestlé's performance,” Navratil said in the release.
Nestlé shares (SWX: NESN) closed CHF 10 (0.13%) higher at $75.49 on Monday, capitalising the company at CHF 191.30 billion (A$364.6 billion).
Founded in 1867, the Swiss-based company operates in 190 countries through brands like Nescafé coffee, KitKat chocolate, Gerber baby food, Maggi seasoning and instant noodles and Lean Cuisine frozen meals.
