Plus: A Polish CEO has apologized for hat-snatching at U.S. Open; Vogue appoints former social editor as head of editorial.
Exactly a year after becoming CEO of Nestlé, Laurent Freixe was let go over an intraoffice relationship with a direct report he failed to disclose.
The relationship was first reported through an internal tip line called “Speak Up,” the Wall Street Journal reports. The tipster said Freixe and a marketing executive were having an intimate relationship, though the executive reported directly to Freixe.
In a press release on Monday, Nestlé said:
“The departure of Laurent Freixe follows an investigation into an undisclosed romantic relationship with a direct subordinate which breached Nestlé’s Code of Business Conduct. In line with best practice corporate governance, the Board ordered an investigation overseen by Chairman Paul Bulcke and Lead Independent Director, Pablo Isla, with the support of independent outside counsel.”
Paul Bulcke, chairman at Nestlé added that, “This was a necessary decision. Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service at Nestlé.”
The company additionally announced Philipp Navratil as Freixe’s successor, sharing a detailed history of his success leading different divisions of the organization.
Nestlé added: “We are not changing course on strategy and we will not lose pace on performance.”
Why it matters: This could have easily spiraled into a crisis had the company not acted quickly.
By taking immediate action to get ahead of the situation, Nestlé avoided deeper reputational damage or compromising its core values.
Freixe has been with Nestlé since 1986. His dismissal shows that no one is above the organization’s standards. What message would it send if Freixe’s longevity with the company was prioritized over company policy, especially when it comes to such a sensitive topic?
The action also reassures employees that its internal tip line is taken seriously and their concerns are important.
Placing emphasis on the organization’s “strong foundations” of value and governance, handling the situation quickly, and reaffirming its performance and strategy, Nestlé’s leaders are making it clear that integrity and accountability are top priorities.
Editor’s Top Reads:
- A CEO has apologized for his unsportsman-like conduct at a tennis match this past weekend. During the U.S. Open in New York City, the CEO of Polish paving company Drogbruk, Piotr Szczerek, was filmed snatching a hat away from a child during an autograph session with player Kamil Majchrzak. The incident went viral. On Monday, Szczerek took to social media to apologize for his actions. He said, “In connection with the incident that occurred during Kamill Majchrzak’s match at the US Open, I would like to unequivocally apologize to the young boy, his family, all the fans, and the player himself. I take full responsibility for my extremely poor judgment and hurtful actions. It was never my intent to steal away a prized memento from the young fan.” Szczerek went on to say he believed Majchrzak was handing the hat to him for his sons. “Regardless of what I believed was happening, the actions I took hurt the young boy and disappointed the fans,” he said. He added that he sent the hat back to the fan and apologized to him and his family in hopes of “repairing the damage” he caused. While the event wasn’t related to Szczerek’s work at Drogbruk, the incident is another example of how a CEO’s actions, even during a family outing, can reflect on a company. Social media can quickly spark a chain of events that could easily mean a leader’s downfall. Szczerek’s apology, however, hit the right notes: he took accountability for the snafu, he apologized and he took action to correct his mistake. Whether or not Drogbruk is impacted remains to be seen, but regardless, the headlines that mention Szczerek also mention the company he leads, and this alone could be enough to cause some short-term damage.
- American Vogue has named a new head of editorial after decades under Anna Wintour — and she didn’t take a traditional path to land the role. Chloe Malle, the editor of Vogue.com and former social editor, will lead the publication into a new era, Wintour said in a statement. Wintour highlighted Malle’s “multifaceted approach” and her success growing the magazine’s digital audience. “At a moment of change both within fashion and outside it, we must continue to be both the standard-bearer and the boundary-pushing leader,” Wintour said. “Chloe has proven often that she can find the balance between American Vogue’s long, singular history and its future on the front lines of the new.” Malle’s promotion shows a diversion from a traditional journalist’s path, having risen from a background in social media, where she tracked metrics and regularly interacted with Vogue’s audience. The growing impact social media specialists are playing in newsrooms means that PR pros will have to think about their pitching strategies, which must evolve along with the changing definition of what and who a journalist is.
- U.S. District Judge Amit Mehta ruled on Tuesday that Google will not have to sell Chrome or Android, a demand made by the Department of Justice that would have been a drastic shift in how search works. Mehta did order Google to share search data and index information with competitors, however. But the general feeling is that not much will change, Computer World reports. “A Chrome divestiture would be incredibly messy and highly risky,” the court concluded, per the news outlet. “Chrome (has a) deep integration with Google’s technical infrastructure and…over 80% of its users are outside the U.S.” While things will remain the same for now, the case also highlighted that “Google Search queries in Safari had declined for the first time in 22 years, likely due to AI chatbots, signaling the emerging competitive threat that influenced the court’s remedy design.” In other words, AI is likely to shake things up in a way that will cause a major shift.
Courtney Blackann is a communications reporter. Connect with her on LinkedIn or email her at courtneyb@ragan.com.
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