Nestle CEO Laurent Freixe attends the Annual General Meeting of Nestle in Ecublens near Lausanne, Switzerland, April 16, 2025. REUTERS
Freixe was not immediately available to comment when contacted via email. The identity of the female subordinate has not been made public.
His dismissal adds to a list of top executives forced to resign following investigations into their relationships with colleagues.
Energy giant BP’s former CEO Bernard Looney and McDonald’s CEO Steve Easterbrook were both removed for failing to disclose relationships with colleagues.
STABILITY SOUGHT
Nestle’s shares, a bedrock of the Swiss stock exchange, have lost almost a third of their value over the past five years, underperforming European peers.
Freixe’s appointment failed to halt the slide, with the company’s shares shedding 17% during his leadership, disappointing investors.
One top 20 Nestle investor welcomed news of the change, saying that Freixe had been a disappointment and that bringing in Navratil was an opportunity for more ambitious overhaul.
The new CEO needs to slim down the company, cut costs and above all reduce the headcount, said the investor who declined to be named due to the sensitivity of the matter. It was also crucial that the company raise organic growth to boost volumes.
“The cash flow must cover the dividend,” the investor said. “That’s an absolute priority.”
In July, Nestle launched a review of its underperforming vitamins business that could lead to the divestment of some brands after first-half sales volumes missed expectations.
Freixe’s dismissal was featured on the front page of Swiss newspapers, with Neue Zuercher Zeitung noting that Nestle had lost its “legendary stability” where CEOs stayed for years before eventually becoming chairmen.
AJ Bell investment director Russ Mould said that the company would likely face a period of uncertainty over whether Navratil will follow the same path as his predecessor.
“While Navratil is also an internal appointment, he will want to put his own mark on strategy and that suggests the clock could be reset when it comes to the turnaround plan,” Mould said.
Writing by John Revill, Dave Graham and Louise Heavens; additional reporting by Oliver Hirt and Paolo Laudani; Editing by Andrea Ricci, Muralikumar Anantharaman, Louise Heavens and Emelia Sithole-Matarise
