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Nestle CEO Laurent Freixe Scandal: Is a ‘Romantic Relationship’ With an Employee the New Normal?

CEOs in romantic relationships with employees face backlash. From Nestlé to McDonald’s, scandals raise big questions on power, trust, and ethics.

Published By: Sumit Kumar
Last Updated: September 2, 2025 18:44:40 IST

Romantic relationships in the workplace are not new, but when the romance involves a CEO and a direct employee, the story becomes headline news. In recent years, several top executives across global companies have lost their jobs because of undisclosed relationships with subordinates.

These cases raise one big question: Is it now normal for CEOs to date employees, or is it still a violation of trust and policy?

Nestle Fires CEO Laurent Freixe

Food giant Nestle startled the business community on September 1, 2025, when it fired CEO Laurent Freixe. Freixe’s unreported relationship with a direct subordinate was confirmed by reports. Citing a breach of ethical obligation and trust, the corporation moved swiftly. This was more than simply a personal issue for Nestle.

It was a leadership issue that could impact workplace culture and employee confidence.

Astronomer Scandal: CEO Andy Byron

Earlier this year, Astronomer Inc. also saw a major scandal. CEO Andy Byron was caught in a public “kiss-cam” moment with the company’s HR chief during a Coldplay concert. Soon after, he resigned from his position.

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The incident went viral, raising serious concerns about professionalism and conflicts of interest. HR chiefs are responsible for handling employee matters, so the relationship made the controversy even bigger.

McDonald’s Case: Steve Easterbrook

This is not the first time a global brand faced such a crisis. In 2019, McDonald’s CEO Steve Easterbrook was dismissed after entering into a consensual relationship with an employee. The board said the affair violated the company’s anti-fraternization policy.

The dismissal statement mentioned “poor judgment” and the risk of setting a bad example. Easterbrook was replaced by Chris Kempczinski, who promised to rebuild trust.

The Bigger Question

These examples show that workplace romances at the top level are no longer private matters. For a CEO, the issue is not only about love. It is about power imbalance, favoritism, ethics, and company image.

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When a CEO dates a subordinate, it creates a risk of bias in promotions, unfair treatment, and loss of employee trust.

Is This the New Normal?

Some argue that in modern workplaces, consensual relationships should not be judged harshly. Others believe CEOs must follow higher standards because they represent the face of the company. In most global firms, policies against romantic relationships with direct reports are strict. They exist to protect both the company and the employees involved.

What Companies Must Do

Experts say companies should:

  • Have clear policies on workplace relationships.
  • Train leaders to avoid conflicts of interest.
  • Ensure transparency when such relationships occur.
  • Put employee well-being above individual choices.

The recent cases of Nestlé, Astronomer Inc., and McDonald’s show that when CEOs enter into relationships with employees, the result is usually resignation or dismissal. Whether it becomes the new normal or not, one thing is clear, CEOs are under stricter public and corporate scrutiny than ever before.

Love may be private, but for CEOs, the workplace consequences are very public.

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The Daily Guardian is India’s fastest growing News channel and enjoy highest viewership and highest time spent amongst educated urban Indians.

© Copyright ITV Network Ltd 2025. All right reserved.