Nestle CEO axed after probe into complaints of favouritism: CFO

ZURICH: Nestle staff complained in May about improper favouritism by former CEO Laurent Freixe towards an employee with whom they alleged he was romantically involved, a senior executive said on Wednesday, two days after Freixe was sacked.

Freixe was fired due to an undisclosed relationship with a subordinate, exactly a year after he replaced Mark Schneider, plunging the Swiss food giant into turmoil.

Chief Financial Officer Anna Manz said the relationship between Freixe and the employee, who has not been named, was first examined in an internal investigation following concerns raised via Nestle’s internal reporting system, called Speak Up.

“Back in May, we received a Speak Up through our internal channels alleging a romantic relationship with an employee and improper favouritism,” Manz told a Barclays investor conference.

The matter was investigated by the board, but no evidence was found, she said.

“And it was at that point that Laurent also made a personal statement stating that there had been no such thing,” Manz said, referring to the concerns about Freixe raised by whistleblowers.

But complaints continued to be made, Manz said, leading to a second, broader inquiry being launched with help from Swiss lawyers Baer & Karrer.

“And it was that that triggered information that led to the board believing that there had been a breach of conduct and that they needed to act to change the CEO,” she said.