Nestle dismisses CEO Freixe after romantic relationship with subordinate

STORY: :: File

Just a year after taking the reins, Laurent Freixe was abruptly dismissed as CEO of Nestle for failing to disclose a romantic relationship with a subordinate.

The decision was announced by the Swiss food giant on Monday.

A company spokesman told Reuters concerns about a possible relationship between Freixe and a direct report first emerged in the spring through an internal company hotline.

The board of directors immediately opened an investigation into the matter, which was inconclusive, this person added.

As the concerns persisted, the company launched a second probe, which confirmed the relationship.

According to the spokesperson, Freixe had initially denied the relationship to the board.

The maker of products ranging from KitKat to Nesquik has appointed veteran insider Philipp Navratil as Freixe's successor, effective immediately..

Nestle shares have fallen 17% over the past year, lagging its rivals and the broader market. Related Videos

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