Nestlé Investors Face Turbulence After CEO Laurent Freixe Ousted
Nestlé investors were thrown back into uncertainty on Tuesday after the Swiss food giant replaced its CEO for the second time in a year. Laurent Freixe was dismissed following an internal investigation into a relationship with a subordinate that violated Nestlé’s code of conduct.
Shares in Nestlé dropped 1.9% in Zurich premarket trading after the announcement. The decision came during a board meeting on Monday, where directors reviewed the findings of the investigation.
The leadership shake-up adds more pressure on investors already frustrated by three years of declining share prices between 2022 and 2024. So far, 2025 has shown no sign of a turnaround.
Philipp Navratil Named New CEO
Freixe, a 39-year Nestlé veteran, will be replaced by Philipp Navratil, seen as a rising star at the company. Nestlé, which owns global brands like Nescafé and KitKat, has faced weak sales volumes since the pandemic.
Nestlé confirmed that Freixe will not receive an exit package. His dismissal comes only a year after former CEO Mark Schneider was removed and shortly after chairman Paul Bulcke announced he will step down in 2026.
Bulcke thanked Freixe for his service but said the dismissal was a “necessary decision.”
Market Demands Stability
Nestlé’s shares, once considered a safe investment in Switzerland, have lost nearly a third of their value over the past five years. During Freixe’s short tenure, shares dropped another 17%, disappointing shareholders further.
In July, the company began reviewing its struggling vitamins business, raising the possibility of divesting underperforming brands. Analysts say investors are now demanding more stability from Nestlé’s management.
Maurizio Porfiri of Maverix noted that the market did not favor Freixe’s leadership and that restructuring goals had been delayed. Analysts at JPMorgan also warned that investors remain cautious, as the company appointed a new CEO without a thorough replacement search for the second time in a year.
Investor Concerns Remain
Swiss newspapers highlighted the rare turmoil at Nestlé, once known for long-serving CEOs who often transitioned into chairman roles. Analysts warn that the latest shake-up could weigh on Nestlé’s share price and delay clarity on its mid-term strategy.
Jon Cox of Kepler Cheuvreux said Nestlé’s reputation for stability has been shaken: “This is not the Nestlé way, to have two CEO replacements in just over a year. Hopefully, this move puts the company back on track.”
