Here We Go Again: Nestlé's CEO Dismissal Proves Corporate America Isn't Playing Games Anymore
Following my recent article about the Astronomer CEO's forced resignation, we have yet another high-profile leadership scandal: the corporate world is done playing games with executive misconduct.
Nestlé's swift dismissal of CEO Laurent Freixe after just one year—with zero exit package—sends an unmistakable signal that boards are no longer tolerating leadership failures. This isn't coincidence; it's the new corporate reality where ethical leadership isn't optional.
As I wrote before, it's not enough to talk about ethical leadership—we must have the policies and backbone to enforce them.
Zero Tolerance = Zero Packages
What makes Nestlé's response particularly striking is its directness compared to Astronomer. While Byron was allowed to resign, Nestlé didn't offer that courtesy—they fired Freixe outright. And crucially: No exit package. No golden parachute. No severance.
This escalation from forced resignation to outright termination represents a hardening stance with increasingly severe consequences.
Policies without teeth are just expensive wall decorations.
The Escalating Pattern
The progression shows boards raising stakes with each incident:
1. Kohl's fired CEO Ashley Buchanan after 100+ days for undisclosed vendor relationships
2. Astronomer's CEO was placed on leave and resigned under pressure after the viral concert incident
3. Nestlé outright terminated Freixe with zero compensation
The escalation is clear: we've moved from resignations under pressure to direct firings without severance.
What This Means for HR Right Now
Immediate imperatives:
1. Audit Your Conflict Policies—TODAY If your policies don't require immediate disclosure with clear consequences, you're setting up for crisis. Nestlé's hotline worked because employees trusted it would lead to action.
2. Build Investigation Muscle Nestlé's two-tier approach—internal review escalating to external investigation—should be your template.
3. Establish "No Package" Standards The era of golden parachutes for misconduct is over. Your separation agreements need clear language that violations void all severance.
The Bottom Line: The Era of Consequences Has Arrived
The new reality is non-negotiable:
✅ Swift, decisive action regardless of leadership level
✅ Financial consequences that match violation severity
✅ Systems designed to surface problems before they become crises
This isn't just another CEO scandal—it's confirmation that the seismic shift. Organizations that haven't adapted aren't just behind the curve—they're sitting ducks. Is your org prepared for the era where ethical leadership isn't just expected—it's enforced?
What are you seeing in your organization's approach to leadership standards?