{"id":107851,"date":"2025-09-02T21:11:16","date_gmt":"2025-09-02T18:11:16","guid":{"rendered":"https:\/\/www.capitalfm.co.ke\/business\/?p=107851"},"modified":"2025-09-02T21:11:16","modified_gmt":"2025-09-02T18:11:16","slug":"nestle-fires-boss-after-romantic-relationship-with-employee","status":"publish","type":"post","link":"https:\/\/www.capitalfm.co.ke\/business\/2025\/09\/nestle-fires-boss-after-romantic-relationship-with-employee\/","title":{"rendered":"Nestle fires boss after romantic relationship with employee"},"content":{"rendered":"<div class=\"sc-3b6b161a-0 fDtfvH\" data-component=\"headline-block\"><\/div>\n<figure>\n<div class=\"sc-3b6b161a-0 kVRMhO\" data-component=\"image-block\">\n<div class=\"sc-d1200759-1 kycbVO\" data-testid=\"hero-image\"><\/div>\n<\/div>\n<\/figure>\n<div class=\"sc-3b6b161a-0 dEGcKf\" data-component=\"text-block\">\n<p class=\"sc-9a00e533-0 hxuGS\"><strong>SEP 2 &#8211; Nestle has fired its chief executive after just one year in the job because he failed to disclose a &#8220;romantic relationship&#8221; with a &#8220;direct subordinate&#8221;.<\/strong><\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">The Swiss food giant, which makes Kit Kat chocolate bars and Nespresso coffee capsules, said Laurent Freixe had been dismissed with &#8220;immediate effect&#8221; following an investigation led by Nestle&#8217;s chair and lead independent director.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">The BBC understands the inquiry was triggered by a report made through the company&#8217;s whistleblowing channel.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">Nestle chair Paul Bulcke said: &#8220;This was a necessary decision. Nestle&#8217;s values and governance are strong foundations of our company. I thank Laurent for his years of service at Nestle.&#8221;<\/p>\n<\/div>\n<div class=\"sc-3b6b161a-0 dEGcKf\" data-component=\"text-block\">\n<p class=\"sc-9a00e533-0 hxuGS\">The relationship was with an employee who is not on the executive board and the investigation began because it represented a conflict of interest, the BBC has learned.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">As well as Mr Bulcke, independent director Pablo Isla oversaw the inquiry into Mr Freixe &#8220;with the support of independent outside counsel&#8221;.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">The Financial Times has reported that concerns were raised about Mr Freixe&#8217;s relationship with an employee earlier this year and, after an internal investigation, the claims were found to be unsubstantiated.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">After the complaints persisted, the newspaper reports that Nestle conducted another investigation with help from outside counsel after which the claims were upheld.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">A spokesperson for Nestle said: &#8220;We acted at all times in line with best practice corporate governance.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">&#8220;The external investigation was opened shortly after the initial internal investigation, and today&#8217;s decision shows that we are taking allegations and investigations seriously.&#8221;<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">Mr Freixe had been with Nestle for nearly 40 years but stepped up to the global chief executive role last September, replacing Mark Schneider.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">Nestle confirmed that he will not receive an exit package.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">The BBC has contacted Mr Freixe for comment.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">Philipp Navratil, who has been with Nestle since 2001, has been appointed as Mr Freixe&#8217;s successor.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">Mr Bulcke said the company was &#8220;not changing course on strategy and we will not lose pace on performance&#8221;.<b id=\"\" class=\"sc-d16436d-0 jpoiOL\"><\/b><\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">Mr Bulcke is set to step down as chair next year and Mr Isla, the former boss of Zara-owner Inditex, has been proposed as his replacement.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">Other companies have parted ways with their chief executives following investigations into their personal relationships with colleagues.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\"><a class=\"sc-f9178328-0 bGFWdi\" href=\"https:\/\/www.bbc.co.uk\/news\/business-66790609\" target=\"_self\">BP chief executive Bernard Looney<\/a>, who led the oil giant for three years, quit after admitting he was not &#8220;fully transparent&#8221; initially.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\"><a class=\"sc-f9178328-0 bGFWdi\" href=\"https:\/\/www.bbc.co.uk\/news\/business-64211747\" target=\"_self\">Steve Easterbrook was fired by McDonald&#8217;s<\/a>\u00a0in 2019 after it found he had a consensual relationship with an employee.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">But McDonald&#8217;s said a further investigation found that the British executive had three additional relationships with staff.<\/p>\n<p class=\"sc-9a00e533-0 hxuGS\">He initially received $105m (\u00a377.5m) in a severance package which he later returned. In 2023, he was fined $400,000 by the US financial watchdog for misleading investors. He paid the penalty without admitting or denying the claims.<\/p>\n<p><strong>By BBC<\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>SEP 2 &#8211; Nestle has fired its chief executive after just one year in the job because he failed to disclose a &#8220;romantic relationship&#8221; with a &#8220;direct subordinate&#8221;. The Swiss food giant, which makes Kit Kat chocolate bars and Nespresso coffee capsules, said Laurent Freixe had been dismissed with &#8220;immediate effect&#8221; following an investigation led [&hellip;]<\/p>\n","protected":false},"author":13285,"featured_media":13205,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"coauthors":[701],"class_list":["post-107851","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-world"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.7.1 (Yoast SEO v25.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Nestle fires boss after romantic relationship with employee - Capital Business<\/title>\n<meta name=\"description\" content=\"SEP 2 - Nestle has fired its chief executive after just one year in the job because he failed to disclose a &quot;romantic relationship&quot; 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