Nestle CEO Laurent Freix was sacked abruptly after he failed to disclose a romantic relationship with a subordinate.
He was fired just a year after he took over as the CEO of the company.
According to a Reuters report, concerns about a possible relationship between Freixe and a direct subordinate first emerged through an internal company hotline.
Following this, the board of directors of the company immediately launched a probe, overseen by chairman Paul Bulcke and lead independent director Pablo Isla.
The probe was inconclusive, but the concerns about the affairs persisted, forcing the company to launch another investigation.
Freixe had initially said he wasn't romantically involved with a subordinate.
The probe, by an external agency, was once again overseen by Bulcke and Isla. It confirmed the romantic relationship.
According to BBC, Laurent Freixe was having relationship with an employee who is not on the executive board of the company.
The probe was initiated because the romantic relationship amounted to a conflict of interest.
"The departure of Laurent Freixe follows an investigation into an undisclosed romantic relationship with a direct subordinate which breached Nestle's code of business conduct," the company said in a statement, calling his departure a "necessary decision."
Freixe, who spent nearly four decades with Nestle, will not exit package following his departure, the company told Reuters.
"The external investigation was opened shortly after the initial internal investigation, and today's decision shows that we are taking allegations and investigations seriously," a company spokesperson has been quoted as saying.
"Nestle's values and governance are strong foundations of our company. I thank Laurent for his years of service," Bulcke said in a statement.
Freixe, who was once described by Nestle as a “natural leader”, will be replaced by Philipp Navratil.