Nestlé to Astronomer: CEOs who lost their jobs over relationships with colleagues

The growing list of corporate chiefs losing their jobs over workplace relationships has once again raised questions about office romances and the risks they pose to companies. Nestlé CEO Laurent Freixe is the latest high-profile executive to face the consequences, after an internal investigation found that he had failed to disclose a relationship with a direct subordinate, violating the company's code of conduct.Nestlé said Freixe's departure followed an investigation into the undisclosed relationship. The company's internal reporting channel was reportedly used by employees to raise concerns about the matter. Freixe initially denied the allegations, Reuters reported."This was a necessary decision. Nestlé’s values and governance are strong foundations of our company,” chairman Paul Bulcke said in a statement announcing the leadership change.Nestlé has appointed Philipp Navratil, formerly the chair of its Nespresso division, as Freixe's successor.Freixe's exit adds to a growing list of corporate leaders who have lost their positions over relationships with colleagues, despite companies having policies to regulate or prohibit such conduct.Growing list of CEOs facing \consequencesWorkplace relationships have proved costly for several high-profile executives in recent years. In August, Andy Byron resigned as CEO of Astronomer after a viral video showed him with the company's chief people officer during a Coldplay concert.In May, Kohl's dismissed its former CEO Ashley Buchanan, just months after he took the job, over a romantic relationship with a woman whose coffee company did business with the retailer.In 2024, Norfolk Southern CEO Alan Shaw was forced out after having a consensual relationship with the company's chief legal officer.The list also includes former BP CEO Bernard Looney, who resigned in 2023 after failing to disclose several consensual relationships with colleagues. The same year, NBCUniversal CEO Jeff Shell was fired over an inappropriate relationship and allegations of sexual harassment.Former McDonald's CEO Steve Easterbrook was terminated in 2019 after having a relationship with an employee. Intel's Brian Krzanich was fired in 2018 after the company learnt about a past consensual relationship with a subordinate.Other cases include former Lululemon CEO Laurent Potdevin, who resigned in 2018, with a relationship involving a female designer reportedly among the issues behind his exit. Lockheed Martin's Chris Kabasik also resigned in 2012, before taking over as CEO, after an investigation revealed an affair with a subordinate.The consequences have not been limited to male executives. Nadine Ahn, former chief financial officer of the Royal Bank of Canada, was terminated in 2024 after an undisclosed relationship with a subordinate.Why office romances remain a concernRelationships between senior executives and their direct reports are particularly sensitive because of the power imbalance involved.Even when both individuals describe a relationship as consensual, it can be difficult to establish whether the subordinate felt free to make that choice. Such relationships can also raise questions about favouritism, conflicts of interest and whether professional decisions are being influenced by personal ties.This is why many organisations prohibit romantic relationships between managers and their direct reports. However, the rules do not appear to be preventing such relationships.A January 2025 Resume Genius survey found that 11% of Gen Z employees had been in a relationship with a direct report. The same percentage said they had been romantically involved with their boss.The actual number of workplace relationships could be considerably higher, as many remain undisclosed. A 2024 survey by the Society for Human Resource Management (SHRM) found that only 22% of employees involved in workplace relationships had disclosed them to their employers.Another survey in 2025 found that 86% of Gen X employees kept their workplace relationships secret.While some employees conceal relationships because their organisations prohibit them, others do so to protect their privacy. Relationships involving employees who are already married or committed to someone else can also remain hidden.Are companies getting their policies wrongThe growing number of such cases raises questions about whether outright bans are an effective way to deal with workplace relationships.One proposed alternative is to shift the focus from prohibition to transparency. Instead of relying primarily on disciplinary action, companies could provide confidential channels through which employees can disclose relationships.Such an approach would also require safeguards to prevent favouritism, monitor workplace decisions and ensure that relationships are genuinely consensual.Under this model, companies could avoid penalising employees simply for being in a relationship, provided they disclose it and comply with established ethical standards.However, implementing such policies is not straightforward. Employees involved in extramarital relationships may be unwilling to disclose them to their employers. Even where companies require disclosure, consensual relationship agreements, sometimes called 'love contracts', may not be used.It can also be difficult for organisations to distinguish between legitimate professional decisions and preferential treatment given to an employee's romantic partner.For now, companies continue to face the challenge of balancing employees' personal lives with professional accountability. Freixe's departure is the latest reminder that workplace relationships, particularly those involving differences in rank and authority, can have consequences that extend far beyond the individuals involved.You use AI every day. Now get your AI Quotient. Take the AIQ test.