ISTANBUL

Swiss food firm Nestle said on Monday that it dismissed CEO Laurent Freixe following an investigation into an undisclosed romantic relationship with a direct subordinate.

The company said in a statement that Freixe's relationship breached Nestle's code of business conduct.

In place of Freixe, Philipp Navratil was appointed as the new CEO.

"This was a necessary decision. Nestle's values and governance are strong foundations of our company. I thank Laurent for his years of service at Nestle," said chairman Paul Bulcke.

He added that the firm's board is "confident" that the new CEO will drive growth plans forward and accelerate efficiency efforts.

Navratil joined Nestle in 2001 as an internal auditor, and has since held several leadership roles, including heading the Coffee Strategic Business Unit and serving as head of Nespresso. He joined the executive board in January.