In a shocking corporate shake-up, Nestle has unexpectedly removed its CEO Laurent Freixe after an internal investigation revealed an undisclosed romantic relationship with a direct subordinate. The Swiss food manufacturing giant made the decision following a thorough probe overseen by Chairman Paul Bulcke and Lead Independent Director Pablo Isla.

The investigation, which began after concerns were raised through an internal company hotline in the spring, confirmed that Freixe had violated the company’s code of business conduct. Initially denying the relationship to the board, Freixe was ultimately dismissed without an exit package, marking a significant leadership transition for the global brand.

Replacing Freixe is Philipp Navratil, a veteran insider who previously led the Nespresso coffee unit. Navratil’s journey with Nestle spans over two decades, having started as an internal auditor in 2001 and progressing through various leadership roles in Central America and Mexico.

This sudden leadership change comes exactly one year after Nestle’s previous CEO departure, raising questions about the company’s stability. Financial analysts from JP Morgan have already noted potential uncertainties about the company’s mid-term direction, particularly as Nestle shares have fallen 17% over the past year.

The incident reflects a broader trend of increased scrutiny around workplace relationships and professional conduct in corporate environments. Other major companies like Unilever, Diageo, and Hershey have also experienced significant management reshuffles this year, indicating a growing emphasis on maintaining strict ethical standards.

Nestle has emphasized that this leadership change will not impact its overall strategic targets. The company remains committed to its core values of transparency and professional integrity, sending a clear message that no executive is above the established code of conduct.

As the business world continues to evolve, incidents like these underscore the importance of professional boundaries and the potential consequences of breaching organizational trust.