Nestlé says it dismissed CEO Laurent Freixe over an undisclosed romantic relationship with his direct subordinate
Business Insider1 day
Nestlé Dismisses CEO Laurent Freixe Over Undisclosed Relationship
Above: Nestlé CEO Laurent Freixe addressing the Nestlé general shareholders meeting in Ecublens, on April 16, 2025. Image copyright: Gabriel Monnet/AFP/Getty Images
The Spin
Narrative A
Nestlé made the right call by swiftly removing Freixe for violating basic corporate governance standards. When a CEO fails to disclose a romantic relationship with a direct subordinate, it creates serious conflicts of interest and undermines the integrity that shareholders and employees deserve from leadership. The company's decisive action demonstrates that strong values and governance aren't just talking points — they're essential foundations that apply to everyone, including the top executives.
Narrative B
This abrupt dismissal creates unnecessary instability at a critical time when Nestlé desperately needs steady leadership to navigate rising commodity costs and declining consumer spending. Firing a seasoned 40-year company veteran over a personal relationship seems disproportionate, especially when the business was already showing signs of strategic progress under his refocused approach on core strengths like coffee and pet care.