Being a CEO is a massive balancing act.
Imagine you finally land the plump corner office job after decades in the trenches. The brief is deceptively simple: fix what’s broken and get the numbers moving north again. That usually translates to spreadsheets stacked a mile high, endless investor exhibitions, and inboxes groaning under the weight of presentation decks.
In all that frenzy, it’s tempting to treat governance like the broccoli on your dinner plate, healthy but easy to shove aside. After all, governance doesn’t show up neatly in quarterly reports, right? Wrong. Ignore it, and it can upend even the most promising of careers. Just ask Laurent Freixe.
Freixe, a 40-year Nestlé veteran, took over as CEO with the mandate to revive sales after years of sluggish growth. But barely a year into the job, complaints surfaced through Nestlé’s internal “Speak Up” hotline in early 2025. Allegations pointed to conflicts of interest and favouritism. The board investigated. They found that Freixe had failed to disclose a romantic relationship with a direct subordinate, a clear breach of Nestlé’s Code of Business Conduct. He was shown the door immediately.
The moral of the story is almost cliché: governance lapses topple even the most senior leaders. Yet, it keeps happening. This year alone, we’ve seen Ashley Buchanan exit Kohl’s for allegedly favouring a vendor she was romantically involved with. Andy Byron of Astronomer became the unwilling star of internet gossip after his workplace relationship spilled into the public eye during a Coldplay concert.
But there’s a silver lining here, and it belongs to Nestlé. The company’s handling of Freixe’s case is a playbook in transparency and accountability. By taking every complaint seriously, even those aimed at the CEO, they’ve reinforced trust within the workforce. Acting swiftly when misconduct was proven sends a powerful message that no one is too senior, too important, or too indispensable to be held accountable.
For employees, this strengthens psychological safety. For the company, it bolsters long-term credibility. And for the rest of us watching, it’s a reminder that governance isn’t vague corporate jargon. It’s the scaffolding that holds trust, culture, and performance together.
Nestlé’s willingness to act decisively, even at the cost of losing a promising leader, underscores a hard truth. Spreadsheets may keep the lights on, but governance keeps the house standing.
