Core Viewpoint - Nestlé has terminated CEO Laurent Freixe due to undisclosed workplace relationships, which violated the company's code of conduct, marking a significant leadership change within the company [1][3]. Group 1: Leadership Changes - Laurent Freixe was dismissed after only one year as CEO, having taken over from Mark Schneider on September 1 of the previous year [3]. - The board emphasized that the decision was necessary to uphold Nestlé's values and governance [1]. - Freixe will not receive any severance pay due to the nature of his dismissal [3]. Group 2: Investigation and Allegations - The investigation into Freixe began in late spring, following multiple internal complaints regarding his alleged romantic relationship with a subordinate, raising concerns about potential conflicts of interest [4]. - Initially, an internal investigation found no factual basis for the allegations, but ongoing complaints led the board to reopen the investigation with external legal counsel [5]. - Freixe had previously denied any internal romantic relationships to the board [5]. Group 3: Industry Context - Freixe's dismissal adds to a trend of high-profile executives losing their positions due to workplace relationships, similar to incidents at McDonald's and Kohl's [6]. - Nestlé has faced other challenges, including a raid by French authorities investigating potential contamination issues and a recall of frozen foods due to safety concerns [7]. - The company's stock performance has been lackluster, with a nearly 17% decline since Freixe's appointment, contrasting with a 5% decline for competitor Unilever [7]. Group 4: Future Outlook - Following Freixe's exit, Philipp Navratil, head of Nespresso, has been appointed as the new CEO, effective January 1, 2025 [9]. - Analysts express skepticism about the new leadership's ability to reassure investors, given the lack of a comprehensive search process for the new CEO [9]. - Concerns remain regarding the effectiveness of the transformation strategy initiated by Freixe, which may limit Navratil's immediate actions [9].
隐瞒职场恋情,雀巢CEO被闪电开除