Swiss consumer giant Nestlé has dismissed CEO Laurent Freixe following an investigation into an undisclosed romantic relationship with a direct subordinate. CNBC's Carolin Roth joins Silvia Amaro to discuss.

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Nestlé has announced the immediate dismissal of CEO Laurent Freixe after an internal investigation revealed he had failed to disclose a romantic relationship with a direct subordinate. This marks the second CEO change at the company in 12 months, during a period of slowing sales and declining share prices.

Philippe Navratil, who has been with Nestlé for over 20 years and most recently led the Nespresso business, has been appointed as the new CEO. The company faces ongoing challenges, including sluggish organic growth, consumer resistance to price increases, and increased competition in key markets. Nestlé's share price has fallen 16% over the past year and is at a decade low.

Nestlé CEO Laurent Freixe departs following investigation

Our top story this Tuesday morning consumer giant Nestle has announced the immediate dismissal of CEO After only a year at the helm of the company It follows an investigation into an undisclosed romantic relationship with a direct subordinate The firm has appointed philippe navratil as its next new chief executive Carolyn is joining us live this morning with more on the story Carolyn i'm just trying to understand and put everything into context here. This is the second ceo in 12 months We when you look at their sales performance, they have been slowing down The stock is down by about 16% over the past 12 months. What is going on at Nestle? A very turbulent times over at Nestle Obviously flexa he was brought in exactly a year ago to turn around this company Under mark schneider whom you know, very well sylvia. The company was struggling He was at the helm of the company for about eight months under him organic growth had been slowing Consumers obviously have been dealing with sky high inflation and then came the advent of the obesity drugs All of that troubled the company So flexa was seen as a safe pair really to turn around the company to reinvigorate Organic growth and maybe more importantly to turn around the share price as well Now under mark schneider shares had fallen roughly 40 from their peak When flexa joined his big job was really to get the share price up It happened in the first quarter of this year But since then shares have been sliding once again and exactly since flexa joined shares have been Down another 16 percent. So now he's out because he did did not disclose This relationship with his direct subordinate in a statement yesterday the chairman paul bulka calling this a quote Necessary decision saying nestle's values and governments Governance are strong foundations of our company. This comes as a big surprise Yes, there have been some reports of the summer that there had been an investigation Into this relationship the first investigation did not find any wrongdoing on low hall flex's part the second one however did uncover that actually A relationship had been taking place and it had been not been disclosed to the company So again a massive setback for this company, which is in the middle of a turnaround But this turnaround too Had been slowing somewhat if you cast your minds back to the end of july when the company reported numbers The organic growth figure came in at roughly 2.8 That's not a bad number But if you look under the hood, you will see that volume growth has pretty much ground to a halt Why is that that's because nestling which is a good thing is able to push through higher prices to the consumers But the consumers are increasingly balking at the higher crisis. So volume growth has ground to a halt I'm, also trying to understand the outlook and the future here carol. And what do we actually know about philip? So we actually know quite a bit he's been with nestle for over 20 years most recently He's been the ceo of the global coffee business of nespresso Which is obviously one of the key growth drivers for nestle So he is an insider that said maybe that's not such a great thing as jp morgan points out In a note this morning. It is another emergency co change, which is unlikely to reassure Adding that it is disappointing that the new ceo is boxed in now to follow his predecessor's strategy At a time when the market is already doubting this again It all comes back to the share price performance as well over the last year shares are down 16 And they're now languishing at a decade low So a lot of question marks a big big job for this new ceo philip navratil Really just to return nestle to its former glory But there's a lot of homework for him. The china business is struggling the vitamins business is struggling. There's new competition Um in its home market in the coffee market with the massive deal most recently with jd e pete's And couric obviously, so that's going to challenge nestle's position in the u.s. Coffee market as well

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