Nestle's Leadership Turmoil: CEO Ousted Amid Scandal

Nestle has dismissed CEO Laurent Freixe after an investigation into an undisclosed romantic relationship, marking the company's second CEO departure in a year. Facing leadership chaos, Nestle appoints Philipp Navratil as the new CEO to tackle declining sales and maintain investor confidence.

Nestle faced a major leadership upheaval as it dismissed CEO Laurent Freixe following an investigation into an undisclosed romantic relationship with a subordinate. This marks the second time in a year that the Swiss food giant has replaced its CEO, leading to significant leadership instability.

Philipp Navratil, previously the head of Nespresso, has been appointed as the new CEO, tasked with addressing the company's challenges, including slowing sales and recovering investor confidence. Nestle's shares have suffered over recent years, dragging down its performance compared to competitors.

The controversy highlights broader governance issues as consumer goods companies struggle post-pandemic. Freixe's departure, lacking an exit package, adds to a list of executives leaving under similar circumstances. Analysts indicate the new leadership must focus on revitalizing the business model to counter market challenges.

(With inputs from agencies.)