Core Insights - Nestlé's CEO Laurent Freixe was dismissed for violating company conduct guidelines, specifically for an inappropriate relationship with a subordinate, highlighting a shift in corporate tolerance towards such behavior [2][3][4] - The new CEO, Philipp Navratil, was promoted internally, indicating a preference for stability and internal leadership amidst ongoing scrutiny of executive conduct [2][4] Group 1: Corporate Governance and Conduct - There is a decreasing tolerance for inappropriate behavior among CEOs, with boards acting swiftly to replace controversial leaders, contrasting with the past where performance issues were often overlooked [3][4] - Freixe did not receive any severance pay upon his departure, reflecting a stricter enforcement of corporate discipline compared to the past, where underperforming executives might receive "golden parachutes" [4] - The details of the misconduct, including Freixe's failure to disclose the relationship, played a crucial role in the decision to terminate him, as many companies maintain a zero-tolerance policy for CEO-employee relationships due to power imbalances [4][5] Group 2: Implications for Leadership - While inappropriate relationships can lead to dismissal, there are instances where high-performing executives' misconduct is overlooked, suggesting a double standard in corporate governance [6][7] - The initial hiring of Freixe by the board, despite knowledge of his personal history, raises questions about the consistency of corporate policies regarding personal conduct and leadership appointments [7]