Nestle investors were thrown into further uncertainty on Tuesday after the Swiss food giant dismissed CEO Laurent Freixe, the second chief executive departure in just over a year.
Freixe, who took over last year, was abruptly removed following an internal investigation that revealed an undisclosed romantic relationship with a direct subordinate, breaching the company’s code of conduct. He will be replaced by Philipp Navratil, a rising executive within the company, News.Az reports, citing Reuters.
The leadership shake-up is the latest setback for the maker of Nescafé and KitKat, which has been struggling to reverse a long decline in its share price. Nestlé’s stock has lost nearly a third of its value over the past five years, significantly underperforming European peers. Under Freixe’s brief tenure, shares slid 17%, frustrating investors hoping for a turnaround.
The turbulence comes amid broader instability at Nestlé. In June, chairman Paul Bulcke announced plans to step down in 2026, while former CEO Mark Schneider was also removed abruptly last year. Analysts say the back-to-back dismissals have eroded the company’s reputation for stability, once considered a hallmark of its governance.
“The market did not particularly like Freixe, and the restructuring goals were put on the back burner,” said Maurizio Porfiri, chief investment officer at Maverix. “Another fresh start is needed, and it is time for more stability to return to the management at this global corporation.”
JPMorgan analysts warned the new appointment was unlikely to reassure investors. In a research note, they said the company had again replaced its chief executive without a thorough search and that Navratil may initially be constrained by Freixe’s still-unfinished turnaround plans.
Swiss newspapers featured the dismissal prominently, with Neue Zürcher Zeitung observing that Nestlé had lost its “legendary stability,” where CEOs once served for years before becoming chairman.
Jon Cox, analyst at Kepler Cheuvreux, said shares could face more pressure in the short term. “This is not the Nestlé way to do things, to have two CEO replacements in just over a year,” he said. “Hopefully this will get them back on the straight and narrow.”
Nestlé is also reviewing its underperforming vitamins business, a process that could lead to divestments after disappointing sales in the first half of the year. Investors now await Navratil’s plan to steady the company and restore market confidence.
