Nestle's Tumultuous Times: Another CEO Ousted Amidst Scandals
Nestle's CEO Laurent Freixe was ousted following an undisclosed affair with a subordinate. This marks the second CEO change in a year, amid ongoing struggles with sales volumes and share prices. Philipp Navratil takes over as Nestle's shares continue to underperform amid concerns about management stability and future direction.
Nestle has once again found itself in tumultuous waters, with the abrupt ousting of CEO Laurent Freixe after a year, following an affair with a subordinate. The Swiss food giant's shares dropped by 1.9% in premarket trading, adding to the frustration of investors grappling with a three-year decline in share prices.
The swift dismissal of Freixe, who spent 39 years at Nestle, follows a board investigation that concluded he breached the company's code of business conduct. His departure comes without an exit package, marking yet another leadership upheaval after predecessor Mark Schneider's removal. Philipp Navratil, a rising star at the company, takes over amid ongoing sales struggles.
In what has been described as one of Nestle's most unstable periods, questions remain over its mid-term direction. Analysts note concerns about management stability, with two CEO replacements within a year and a strategic review of underperforming areas. The recent upheaval highlights the pressure on Nestle to regain stability and investor confidence.
(With inputs from agencies.)
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