Nestle(US:NSRGY) Xin Lang Ke Ji·2025-09-03 01:13Core Viewpoint - Nestlé Group unexpectedly fired CEO Laurent Freixe after just one year in office due to a violation of company conduct rules involving a romantic relationship with a subordinate, which has raised concerns about the company's ongoing restructuring plans and stock performance [2][5][6]. Group 1: CEO Background and Tenure - Laurent Freixe, who had been with Nestlé for 39 years, was appointed CEO in September 2022, receiving widespread recognition at the time [2][3]. - Freixe's career trajectory was seen as exemplary, having risen from sales to management, and he was responsible for strategic adjustments focusing on core businesses like coffee and food, rather than expansion through acquisitions [4]. Group 2: Reasons for Dismissal - The Nestlé board's decision to terminate Freixe was based on an independent investigation that confirmed his inappropriate relationship with a direct subordinate, which violated the company's code of conduct [5][6]. - The board emphasized that maintaining the company's values and governance is crucial, leading to the necessary decision to dismiss Freixe [6]. Group 3: Implications of Dismissal - The sudden leadership change is expected to create further uncertainty in Nestlé's already tumultuous business restructuring efforts, potentially negatively impacting the company's stock price [5]. - Historical examples show that abrupt CEO changes often disrupt business strategies and can lead to negative consequences for the company, as seen in the case of HP's former CEO Mark Hurd [19][21].