Multiple Complaints and Multiple Investigations Led to Nestle CEO Firing

The Sept. 1 removal of Nestle SA’s CEO was the result of employee allegations of not just an affair but favoritism, but it was only a second investigation that turned up enough evidence for removing Laurent Freixe as head of the world’s largest food & beverage company.

Further, the swift promotion of Philipp Navratil to replace Freixe was no act of desperation or urgency, but the result of succession planning that already had been underway and found the 24-year company veteran “the best candidate that they have identified,” according to Anna Manz, Nestle’s chief financial officer.

Manz agreed to be interviewed by Warren Ackerman, Barclays’ head of European consumer staples research, at last week’s Barclays 2025 Global Consumer Staples Conference. A transcript was made available.

Ackerman acknowledged some awkwardness and thanked her for “being as transparent as you can be” as he immediately introduced “the elephant in the room question: Can you maybe just outline as best as you can what happened with Laurent?”

Manz began: “So back in May, we received a speak up through our internal channels, alleging a romantic relationship with an employee and improper favoritism, and that was investigated through an internal investigation overseen by the board. And no evidence was found at that point. And it was at that point that Laurent also made a personal statement stating that there had been no such thing.

“Subsequent to that, we had a number of other speak-ups making slightly different allocations [sic: allegations?] and with slightly different information,” she continued. “And on the back of that, the board initiated a second broader external investigation, and it was that that triggered information that led to the board believing that there have been a breach of conduct and that they needed to act to change CEO.”

Freixe was fired Sept. 1 for “an undisclosed romantic relationship with a direct subordinate which breached Nestlé's Code of Business Conduct,” the company said that day.

Ackerman then asked why Navratil so quickly was named full CEO, not interim leader. “I think some people have been a bit surprised that perhaps there hasn't been a full internal/external process? What was the thinking?” he asked.

“Laurent was … 63 now,” Manz replied. “And so of course, the board have been focused on succession considerably anyway. And a lot of work has been going on in the background looking at both internal and external candidates. Now we didn't expect to find ourselves here now. So timing has come earlier.

“But I think the reason you don't see us do an external search now is because the board felt that actually they've done all of the work and we're well placed, therefore, to appoint the best candidate that they have identified, which is Philipp. And in many ways, given that that work has been done, and they can move quickly to appoint Philipp, it allows us to keep real momentum in the business.”

Ackerman noted the new CEO is 49 and, while he’s been with Nestle 20 years and has led the global coffee business, “he hasn't really had wider Nestlé experience.” Manz replied, “He's a really strategic, thoughtful leader. He's also very pragmatic and executionally focused. And I've seen that working alongside him since he's been in Nespresso.

“I've seen him act to invest to drive growth boldly whilst driving simplification across the organization,” the CFO continued. “So I absolutely see why the board have made the choice that they've made. And I think he'll bring a freshness of perspective and I think a pace to change at Nestlé, and I think that's one of the reasons that the board has made this appointment.”