Nestle has dismissed its Chief Executive Officer, Laurent Freixe, just one year after his appointment, following an internal investigation. The probe found that Freixe had engaged in an undisclosed romantic relationship with a direct subordinate, a clear violation of the company’s strict code of conduct. The swift removal highlights the company’s zero-tolerance policy towards breaches of its ethical guidelines, particularly at the highest levels of leadership.
This sudden reshuffle at the top of the world’s largest food and beverage company is part of a broader global trend. Consumer-facing companies worldwide are increasingly making similar announcements, holding top executives accountable for personal conduct that conflicts with corporate governance standards and workplace policies.
The movement is particularly pronounced in the United States, where companies are removing their CEOs at the fastest pace in two decades. Data shows that at least 41 CEOs have exited S&P 500 companies so far this year, a figure that is rapidly approaching the total of 49 for the entire previous year of 2024.
This accelerated rate of executive turnover signals a new era of corporate accountability. Boards of directors are now acting more decisively to enforce conduct rules and respond to investor and public scrutiny, prioritizing governance and company culture alongside financial performance.
