Background on Laurent Freixe and His Departure
Laurent Freixe, the former CEO of Nestlé, was dismissed following an investigation into allegations of favoritism towards an employee with whom he was reportedly involved in a romantic relationship, according to Nestlé’s Chief Financial Officer, Anna Manz.
The Complaints and Initial Investigation
In May, Nestlé employees raised concerns about improper favoritism shown by Freixe towards an unnamed employee, whom he was allegedly involved with romantically. These concerns were reported through Nestlé’s internal information system, “Speak Up.”
Manz stated during a Barclays investor conference, “We received a ‘Speak Up’ through our internal channels alleging a romantic relationship with an employee and inappropriate favoritism.” Although the initial investigation did not find evidence, Freixe later made a personal statement denying any such relationship.
Continued Complaints and Further Investigation
Despite Freixe’s denial, complaints persisted, prompting a broader investigation with the assistance of Swiss law firm Baer & Karrer. This investigation led the board to believe that a breach of Nestlé’s code of conduct had occurred, resulting in Freixe’s dismissal.
Impact on Nestlé and the Business World
Investors and analysts have described Freixe’s ousting as a historic crisis for Nestlé, traditionally regarded as a cornerstone of the Swiss business elite. The 39-year veteran’s departure has sent shockwaves through the company and the broader business community.
Key Questions and Answers
- Who is Laurent Freixe? Laurent Freixe was the former CEO of Nestlé, a Swiss multinational food and drink processing conglomerate corporation. He served as CEO for nearly a decade, succeeding Mark Schneider in 2017.
- What were the allegations against him? Freixe was accused of showing favoritism towards an employee with whom he was reportedly involved in a romantic relationship. These allegations were raised through Nestlé’s internal “Speak Up” system.
- What was the outcome of the investigation? Although the initial investigation did not find evidence, continued complaints led to a broader investigation. The board ultimately decided that Freixe had breached Nestlé’s code of conduct, resulting in his dismissal.
- Why is this a significant event for Nestlé? Freixe’s ousting is considered a historic crisis for Nestlé, given its tradition as a pillar of the Swiss business elite. The sudden departure of a long-serving executive has caused confusion and raised questions about the company’s corporate governance.
