Nestlé CFO Anna Manz details the timeline of the investigation that resulted in the dismissal of the CEO, noting rapid board action and a smooth leadership transition with Philipp Navratil.

Nestlé CFO Anna Manz has offered insight into the actions that prompted the sudden removal of CEO Laurent Freixe, referencing a three-month timeline. Addressing the Barclays Global Consumer Staples Conference, the CFO told us that the first claims of an undisclosed relationship and undeserved favoritism were looked into internally and proved baseless.

The CFO indicated that further reports emerged later by calls made to the company via its Speak Up hotline, which led to an external investigation involving more targeted areas and eventually resulted in the board replacing the CEO. Manz pointed out that the move was fast since the succession planning was already in progress and the board could easily replace the current CEO with the head of Nespresso, Philipp Navratil.

The CFO noted that Nestlé wants to keep up the pace despite the change in leadership, which coincides with low volume growth and worries among investors. Analysts have cautioned that the shakeup will challenge investor patience, and the experience of Navratil and his endorsement of existing plans should enable him to stabilize the company.