Nestlé said Laurent Frakes, 63, was fired after a board investigation found he had a “secret romantic relationship with a direct report,” the Telegraph reported.
Frakes had worked for the KitKat maker for 40 years and was only appointed CEO in September last year to help stabilize the Swiss group after a series of scandals.
Nestlé has already said Frakes will not receive severance pay and declined to say whether he will receive any bonuses.
Since he only recently became CEO, Nestlé has not yet disclosed Frakes’ full salary. His predecessor, Marc Schneider, earned 9.6 million Swiss francs, and Frakes is believed to have earned around the same amount.
He owns just over 40,000 Nestlé shares worth just over £2.7m, acquired during his time at the company.
Nestlé’s sacking is the latest in a string of CEOs sacked for their relationships with colleagues.
BP’s Bernard Looney resigned two years ago after admitting he had not been “fully forthcoming” about his past relationship with a colleague. He lost up to £32m in salary, pension, and performance bonuses.
But that was a pittance compared to the $105m that Steve Easterbrook, the former chairman of McDonald’s, was forced to give up when it emerged he had a secret affair with a subordinate.
Nestlé, which owns some of the world’s biggest consumer brands, including Quality Street and Milkybar, has named Philippe Navratil as Frakes’ successor. Navratil has been with Nestlé since 2001 and, until recently, headed the Nespresso division.