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| Meta Title | The firing of NestlĂ©âs CEO and the new rules of office romance | Fortune |
| Meta Description | And other insights on office romance from the ousting of Nestlé CEO |
| Meta Canonical | null |
| Boilerpipe Text | An investigation had confirmed reports that he was having an inappropriate relationship with a direct report,
the company said
. Nestlé,
a category laggard
whose share price has been slipping, had already installed a new CEO, Philipp Navratil, an internal hire who previously led the companyâs Nespresso business. The subtext of the press release was clear: Nothing to see here.Â
Despite the lack of kiss cams and
celebrity hijinks
, however, the story has continued to hold peopleâs attention, prompting conversations about the ethical nuances of consensual office romances, changing norms for how companies handle them, and the standards for personal behavior that CEOs are held to.
Here are some takeaways from NestlĂ©âs CEO ouster:Â
The consequences for an improper romance can be severe
Boards have less tolerance now for CEO misconduct, like office romances, compared to 20 or 30 years ago, and are generally moving quickly to replace problematic leaders. The exits following a scandal like this can be far more punitive than when leaders are removed for performance issues, often with âgolden parachutes.â As my colleague Eva Roytburg reported, Freixe left NestlĂ©
without any pay package
.Â
The shift toward tough enforcement is partly due to concerns about perceptions of the company. âThe scrutiny is both internal and external,â says Schloetzer, adding that it goes beyond shareholders. âItâs boards, itâs peers in the C suite, itâs people one level below the C suite. Everybody has a heightened sense of whatâs the right thing to do, and the leash for not doing the right thing has become shorter and shorter.â
The devil is in the details of disclosure
NestlĂ©âs news release said the ex-CEO was being dismissed not just for having a relationship, but for having an
undisclosed
relationship. (Freixe was reportedly investigated twice and denied the affair during the first inquiry.)Â
So would he have been safe if he had come clean?
Probably not, as a chief executive. Most companies have a zero-tolerance policy for CEOs dating employees because no matter where they are on the org chart, the power imbalance is too great for there not to be questions about the CEOâs decision-making and ethics. âI mean, human resources and the board would have to go through some pretty serious mitigation to assuage concerns of favoritism or retaliation or harassment,â says Jason Schloetzer, associate professor at Georgetown Universityâs McDonough School of Business.
That said, work has always been and is still a common place for people to meet (even if itâs no longer the starting point for
one in five relationships, as it was
in the latter part of last century). For executives who arenât CEOs, disclosure of a relationship can sometimes address the problem, along with a reorganization so that one lovestruck employee doesnât report to the other.
Boards have been known to look past misconduct by high performers
Although star CEOs have been taken down by affairs, itâs also true that when a CEO is not living up to expectations, the board might find a way to send that CEO packing using corporate policy for cover, says Schloetzer. Before he became an academic, the professor tells
Fortune
, he became aware that âit is not unusual for companies to do things to get the conclusion that theyâre looking for.âÂ
âFor instance, I can suddenly decide to audit expense reports just to make sure that everybodyâs expense reports are following company practices,â he says. âAnd lo and behold, this person was not following company practices. Now I have a reason to get rid of them.â
Kabrina Chang, clinical professor of business law and ethics at Boston Universityâs Questrom School of Business, agrees, adding that on the flip side, businesses have a way of willfully ignoring poor behavior when it comes to rainmakers.Â
But complaints from employees about a leaderâs behavior can sometimes force action. âWhile a hypothetical board member might turn a hypothetical blind eye,â she says, employees donât have the same incentive to do so.
The Nestlé board overlooked an important detail about Freixe when he was first nominated for the corner office, argues
 Guido Palazzo
, a professor of business ethics at the University of Lausanne and co-author ofÂ
The Dark Pattern: The Hidden Dynamics of Corporate Scandals
:
Â
According toÂ
reports
, the CEO married a woman heÂ
met at Nestlé
; the pair disclosed the relationship, then she left the company.
NestlĂ©âs board would likely have been aware of that background, and hiring him anyway sent a mixed message. âHe should never have become CEO if this behavior was not acceptable at NestlĂ©,â says Palazzo. âInstead, it was tolerated, and he continued to be promoted.â |
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# What the ousting of NestlĂ©âs CEO shows about office romance today
By
[Lila MacLellan](https://fortune.com/author/lila-maclellan/)
Lila MacLellan
Former Senior Writer
By
[Lila MacLellan](https://fortune.com/author/lila-maclellan/)
Lila MacLellan
Former Senior Writer
September 7, 2025, 6:00 AM ET
Add us on

Laurent Freixe, the former CEO of NestlĂ©, was fired after an investigation revealed that he had a romantic relationship with an employee.GettyâAFP/Fabrice Coffrini
It seemed like such a clean break, like snapping off a piece of a Kit Kat bar.
Last week, NestlĂ©, the \$244 billion food conglomerate behind some of the worldâs most beloved candy and coffee brands, announced that its CEO, Laurent Freixe, had been dismissed for violating the company code of conduct after just one year on the job.
Recommended Video
***
An investigation had confirmed reports that he was having an inappropriate relationship with a direct report, [the company said](https://www.nestle.com/media/pressreleases/allpressreleases/executive-board-changes-september-2025). NestlĂ©, [a category laggard](https://www.bloomberg.com/news/newsletters/2025-09-05/nestle-ceo-s-office-romance-shakes-food-giant-at-a-delicate-time) whose share price has been slipping, had already installed a new CEO, Philipp Navratil, an internal hire who previously led the companyâs Nespresso business. The subtext of the press release was clear: Nothing to see here.
Despite the lack of kiss cams and [celebrity hijinks](https://fortune.com/2025/07/28/ryan-reynolds-maximum-effort-ad-agency-astronomer-gwyneth-paltrow-viral-video/), however, the story has continued to hold peopleâs attention, prompting conversations about the ethical nuances of consensual office romances, changing norms for how companies handle them, and the standards for personal behavior that CEOs are held to.
Here are some takeaways from NestlĂ©âs CEO ouster:
## **The consequences for an improper romance can be severe**
Boards have less tolerance now for CEO misconduct, like office romances, compared to 20 or 30 years ago, and are generally moving quickly to replace problematic leaders. The exits following a scandal like this can be far more punitive than when leaders are removed for performance issues, often with âgolden parachutes.â As my colleague Eva Roytburg reported, Freixe left NestlĂ© [without any pay package](https://fortune.com/2025/09/02/nestle-fired-scandal-clad-ceo-pay-package/).
The shift toward tough enforcement is partly due to concerns about perceptions of the company. âThe scrutiny is both internal and external,â says Schloetzer, adding that it goes beyond shareholders. âItâs boards, itâs peers in the C suite, itâs people one level below the C suite. Everybody has a heightened sense of whatâs the right thing to do, and the leash for not doing the right thing has become shorter and shorter.â
## **The devil is in the details of disclosure**
NestlĂ©âs news release said the ex-CEO was being dismissed not just for having a relationship, but for having an *undisclosed* relationship. (Freixe was reportedly investigated twice and denied the affair during the first inquiry.)
So would he have been safe if he had come clean?
Probably not, as a chief executive. Most companies have a zero-tolerance policy for CEOs dating employees because no matter where they are on the org chart, the power imbalance is too great for there not to be questions about the CEOâs decision-making and ethics. âI mean, human resources and the board would have to go through some pretty serious mitigation to assuage concerns of favoritism or retaliation or harassment,â says Jason Schloetzer, associate professor at Georgetown Universityâs McDonough School of Business.
That said, work has always been and is still a common place for people to meet (even if itâs no longer the starting point for [one in five relationships, as it was](https://qz.com/work/1552337/workplace-dating-is-declining) in the latter part of last century). For executives who arenât CEOs, disclosure of a relationship can sometimes address the problem, along with a reorganization so that one lovestruck employee doesnât report to the other.
## **Boards have been known to look past misconduct by high performers**
Although star CEOs have been taken down by affairs, itâs also true that when a CEO is not living up to expectations, the board might find a way to send that CEO packing using corporate policy for cover, says Schloetzer. Before he became an academic, the professor tells *Fortune*, he became aware that âit is not unusual for companies to do things to get the conclusion that theyâre looking for.â
âFor instance, I can suddenly decide to audit expense reports just to make sure that everybodyâs expense reports are following company practices,â he says. âAnd lo and behold, this person was not following company practices. Now I have a reason to get rid of them.â
Kabrina Chang, clinical professor of business law and ethics at Boston Universityâs Questrom School of Business, agrees, adding that on the flip side, businesses have a way of willfully ignoring poor behavior when it comes to rainmakers.
But complaints from employees about a leaderâs behavior can sometimes force action. âWhile a hypothetical board member might turn a hypothetical blind eye,â she says, employees donât have the same incentive to do so.
## **If your spouse used to report to you, you probably shouldnât be a CEO**
The Nestlé board overlooked an important detail about Freixe when he was first nominated for the corner office, argues [Guido Palazzo](https://www.linkedin.com/in/ACoAAA0ItK8B_RHbgqSxOkMIEi2fwzwxy8Rb0tw), a professor of business ethics at the University of Lausanne and co-author of *[The Dark Pattern: The Hidden Dynamics of Corporate Scandals](https://www.google.com/search?sca_esv=67db8545f6bda9c4&rlz=1C5XOFX_enCA1158CA1158&sxsrf=AE3TifMspWvKcPbYsN4KTGKV-CyvSXZUmg:1757093289413&q=The+Dark+Pattern:+The+Hidden+Dynamics+of+Corporate+Scandals&si=AMgyJEs9DArPE9xmb5yVYVjpG4jqWDEKSIpCRSjmm88XZWnGNXYcjeWzxiv7FwvmW4mYHR2aC9HjhHJ7LEf406_3avXdZjgO6xCL7qwT5LX5TfSNgH2i8nl7FbNEpa1r5g5SSdsxRWojQdE_vTjLarpuWu1lrijYOqwOwIlWgBfwwpr-9N9aS1NzeH4ptXLEmMf8VkxsLUEkEdhhgwSF9MfrmL0Lcq9QAW_tcgrTaSWXabJRhOCkcXz4z-uWXGnuEGEaj6JQ3qIuXu4RpasY5Acb7TwdLbc-O62G9ol9n87kkBPd5TotBDEv46NV5By21rVmjQdceT1vGTfPUInaHmug0AQx3oDobQ%3D%3D&sa=X&ved=2ahUKEwi89OjKksKPAxUQ1fACHT3BIKoQmxN6BAgbEAI)*:According to [reports](https://www.thetimes.com/world/europe/article/laurent-freixe-nestle-ceo-mistress-affair-6r9zr0hkj), the CEO married a woman he [met at Nestlé](https://www.bilanz.ch/archiv/kriegt-nestle-unter-laurent-freixe-die-kurve-798979?utm_source=chatgpt.com); the pair disclosed the relationship, then she left the company.
NestlĂ©âs board would likely have been aware of that background, and hiring him anyway sent a mixed message. âHe should never have become CEO if this behavior was not acceptable at NestlĂ©,â says Palazzo. âInstead, it was tolerated, and he continued to be promoted.â
At the invitation-only **Fortune COO Summit,** taking place **June 1â2 in Arizona**, COOs from the nationâs largest companies will come together to examine how AI and emerging technologies are reshaping operating models, strengthening resilience, and enabling faster and smarter decision-making. **[Register now](https://conferences.fortune.com/event/Fortune-COO-Summit-2026/HOME?utm_source=flm-conference&utm_medium=article_tout&utm_campaign=coo2026&utm_content=).**
About the Author
By [Lila MacLellan](https://fortune.com/author/lila-maclellan/)Former Senior Writer
Lila MacLellan is a former senior writer at *Fortune*, where she covered topics in leadership.
[See full bio](https://fortune.com/author/lila-maclellan/)
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| Readable Markdown | An investigation had confirmed reports that he was having an inappropriate relationship with a direct report, [the company said](https://www.nestle.com/media/pressreleases/allpressreleases/executive-board-changes-september-2025). NestlĂ©, [a category laggard](https://www.bloomberg.com/news/newsletters/2025-09-05/nestle-ceo-s-office-romance-shakes-food-giant-at-a-delicate-time) whose share price has been slipping, had already installed a new CEO, Philipp Navratil, an internal hire who previously led the companyâs Nespresso business. The subtext of the press release was clear: Nothing to see here.
Despite the lack of kiss cams and [celebrity hijinks](https://fortune.com/2025/07/28/ryan-reynolds-maximum-effort-ad-agency-astronomer-gwyneth-paltrow-viral-video/), however, the story has continued to hold peopleâs attention, prompting conversations about the ethical nuances of consensual office romances, changing norms for how companies handle them, and the standards for personal behavior that CEOs are held to.
Here are some takeaways from NestlĂ©âs CEO ouster:
## **The consequences for an improper romance can be severe**
Boards have less tolerance now for CEO misconduct, like office romances, compared to 20 or 30 years ago, and are generally moving quickly to replace problematic leaders. The exits following a scandal like this can be far more punitive than when leaders are removed for performance issues, often with âgolden parachutes.â As my colleague Eva Roytburg reported, Freixe left NestlĂ© [without any pay package](https://fortune.com/2025/09/02/nestle-fired-scandal-clad-ceo-pay-package/).
The shift toward tough enforcement is partly due to concerns about perceptions of the company. âThe scrutiny is both internal and external,â says Schloetzer, adding that it goes beyond shareholders. âItâs boards, itâs peers in the C suite, itâs people one level below the C suite. Everybody has a heightened sense of whatâs the right thing to do, and the leash for not doing the right thing has become shorter and shorter.â
## **The devil is in the details of disclosure**
NestlĂ©âs news release said the ex-CEO was being dismissed not just for having a relationship, but for having an *undisclosed* relationship. (Freixe was reportedly investigated twice and denied the affair during the first inquiry.)
So would he have been safe if he had come clean?
Probably not, as a chief executive. Most companies have a zero-tolerance policy for CEOs dating employees because no matter where they are on the org chart, the power imbalance is too great for there not to be questions about the CEOâs decision-making and ethics. âI mean, human resources and the board would have to go through some pretty serious mitigation to assuage concerns of favoritism or retaliation or harassment,â says Jason Schloetzer, associate professor at Georgetown Universityâs McDonough School of Business.
That said, work has always been and is still a common place for people to meet (even if itâs no longer the starting point for [one in five relationships, as it was](https://qz.com/work/1552337/workplace-dating-is-declining) in the latter part of last century). For executives who arenât CEOs, disclosure of a relationship can sometimes address the problem, along with a reorganization so that one lovestruck employee doesnât report to the other.
## **Boards have been known to look past misconduct by high performers**
Although star CEOs have been taken down by affairs, itâs also true that when a CEO is not living up to expectations, the board might find a way to send that CEO packing using corporate policy for cover, says Schloetzer. Before he became an academic, the professor tells *Fortune*, he became aware that âit is not unusual for companies to do things to get the conclusion that theyâre looking for.â
âFor instance, I can suddenly decide to audit expense reports just to make sure that everybodyâs expense reports are following company practices,â he says. âAnd lo and behold, this person was not following company practices. Now I have a reason to get rid of them.â
Kabrina Chang, clinical professor of business law and ethics at Boston Universityâs Questrom School of Business, agrees, adding that on the flip side, businesses have a way of willfully ignoring poor behavior when it comes to rainmakers.
But complaints from employees about a leaderâs behavior can sometimes force action. âWhile a hypothetical board member might turn a hypothetical blind eye,â she says, employees donât have the same incentive to do so.
The Nestlé board overlooked an important detail about Freixe when he was first nominated for the corner office, argues [Guido Palazzo](https://www.linkedin.com/in/ACoAAA0ItK8B_RHbgqSxOkMIEi2fwzwxy8Rb0tw), a professor of business ethics at the University of Lausanne and co-author of *[The Dark Pattern: The Hidden Dynamics of Corporate Scandals](https://www.google.com/search?sca_esv=67db8545f6bda9c4&rlz=1C5XOFX_enCA1158CA1158&sxsrf=AE3TifMspWvKcPbYsN4KTGKV-CyvSXZUmg:1757093289413&q=The+Dark+Pattern:+The+Hidden+Dynamics+of+Corporate+Scandals&si=AMgyJEs9DArPE9xmb5yVYVjpG4jqWDEKSIpCRSjmm88XZWnGNXYcjeWzxiv7FwvmW4mYHR2aC9HjhHJ7LEf406_3avXdZjgO6xCL7qwT5LX5TfSNgH2i8nl7FbNEpa1r5g5SSdsxRWojQdE_vTjLarpuWu1lrijYOqwOwIlWgBfwwpr-9N9aS1NzeH4ptXLEmMf8VkxsLUEkEdhhgwSF9MfrmL0Lcq9QAW_tcgrTaSWXabJRhOCkcXz4z-uWXGnuEGEaj6JQ3qIuXu4RpasY5Acb7TwdLbc-O62G9ol9n87kkBPd5TotBDEv46NV5By21rVmjQdceT1vGTfPUInaHmug0AQx3oDobQ%3D%3D&sa=X&ved=2ahUKEwi89OjKksKPAxUQ1fACHT3BIKoQmxN6BAgbEAI)*:According to [reports](https://www.thetimes.com/world/europe/article/laurent-freixe-nestle-ceo-mistress-affair-6r9zr0hkj), the CEO married a woman he [met at Nestlé](https://www.bilanz.ch/archiv/kriegt-nestle-unter-laurent-freixe-die-kurve-798979?utm_source=chatgpt.com); the pair disclosed the relationship, then she left the company.
NestlĂ©âs board would likely have been aware of that background, and hiring him anyway sent a mixed message. âHe should never have become CEO if this behavior was not acceptable at NestlĂ©,â says Palazzo. âInstead, it was tolerated, and he continued to be promoted.â |
| Shard | 79 (laksa) |
| Root Hash | 13809836321913650279 |
| Unparsed URL | com,fortune!/2025/09/07/nestle-ceo-fired-office-romance/ s443 |