Nestlé fires CEO over "romantic relationship" with employee

Driving the news: Nestlé chair Paul Bulcke and lead independent director Pablo Isla led an investigation into the relationship, which the company said breached its code of business conduct.

• Independent outside counsel assisted in the probe, according to a company statement.

What they're saying: "This was a necessary decision," Bulcke said in a statement Monday.

• "Nestlé's values and governance are strong foundations of our company. I thank Laurent for his years of service at Nestlé," said Bulcke of Freixe, who had spent 40 years with the company.
• Bulcke praised Navratil "for his impressive track record of achieving results in challenging environments."
• He added, "Renowned for his dynamic presence, he inspires teams and leads with a collaborative, inclusive management style. The Board is confident that he will drive our growth plans forward and accelerate efficiency efforts."

Background: Navratil started his career at Nestlé as an internal auditor in 2001.

• He's held a variety of roles in Central America and was appointed country manager for Nestlé Honduras in 2009 before assuming leadership of the coffee and beverage business in Mexico in 2013.

• Nestlé said in its statement Navratil played "a pivotal role" in strengthening the Nescafé coffee brand before, going on to oversee the company's coffee strategic business unit in 2020 before becoming Nespresso CEO in July 2024. He joined the Nestlé executive board in January.

State of play: Nestlé has been struggling with its vitamins and supplements business in recent months and is looking to sell its bottled water division that includes products such as Perrier and S.Pellegrino.