Nestlé: Corporate governance lessons

Dominic Carman

Nestlé’s former CEO failed to disclose his romantic relationship with a junior exec: what does his indiscretion say about why personal conduct matters?

As the world’s largest food and beverage conglomerate, Nestlé is known externally for its vast portfolio of 2000 brands including coffee, confectionery, infant formula, and pet care products. But last year, the Swiss multinational attracted significant attention for a case of internal misconduct.

After nearly four decades at Nestlé, Laurent Freixe succeeded Mark Schneider as the company’s chief executive officer (CEO) in 2024. On 1 September 2025, Nestlé announced Freixe’s immediate dismissal citing an “undisclosed romantic relationship with a direct subordinate which breached Nestlé’s Code of Business Conduct.”

This followed investigations that were initially triggered by a report from an anonymous tip to “Speak Up”, the company’s whistleblower hotline. According to a Nestlé spokesperson, Freixe was not dismissed for having a relationship with a junior colleague, but for failing to report it. Nestlé’s mandatory conflict of interest declaration requires employees to disclose potential conflicts of interest that could be damaging to the reputation of an employee, the company, or both.

One Swiss lawyer wryly observes: “When you are the CEO of such an icon, you know what the rules are. The rule that applies to every individual is linked to your position. At Nestlé, people knew; but no one said anything. Eventually, someone did.”