Key Points:
- CEO Laurent Freixe ousted for misconduct.
- Philipp Navratil named new CEO.
- Investor concerns rise over leadership and stock decline.
Nestlé has been thrust into another leadership crisis after abruptly removing Chief Executive Officer Laurent Freixe. The decision followed internal investigations that confirmed Freixe engaged in an undisclosed relationship with a direct subordinate, violating the company’s Code of Business Conduct. His exit comes just a year after the dismissal of his predecessor, amplifying concerns about corporate governance and stability at the Swiss multinational.
The timing of Laurent Freixe’s departure is especially sensitive, as Nestlé is already preparing for the 2026 retirement of its long-serving Chairman, Paul Bulcke. The back-to-back leadership changes have raised questions about continuity at the world’s largest food and beverage company.
New CEO Takes Charge
In response to the sudden vacancy, Nestlé appointed Philipp Navratil as its new CEO with immediate effect. Navratil, who has been with the company since 2001, has held senior roles across Latin America, the coffee division, and, most recently, as head of Nespresso. Earlier this year, he was elevated to the company’s Executive Board, positioning him as a natural successor.
Despite the turmoil, Nestlé emphasized that its strategic direction will remain unchanged. Company leaders reassured stakeholders that ongoing initiatives will continue without disruption, signaling a determination to maintain performance goals and protect investor confidence.
Investor Concerns Mount
Laurent Freixe’s ouster and Navratil’s swift promotion have stirred fresh turbulence in Nestlé’s investor community. Shares of the company have struggled in recent years, losing more than 30 percent of their value over the past five years, including a 17 percent decline during Freixe’s tenure. Analysts warn that the new CEO may face limited flexibility, bound by strategies already in motion, while being under pressure to restore growth and investor trust.
Adding to the uncertainty, Paul Bulcke’s pending departure in 2026 has fueled speculation about further shifts at the top. While Vice Chairman Pablo Isla is set to succeed him, many investors remain cautious, pointing to the need for stronger governance and a clear long-term strategy.
Nestlé now faces the dual challenge of repairing its leadership image and proving its resilience in a period marked by executive instability, underperformance in the market, and heightened scrutiny from shareholders.
