When Nestlé abruptly ousted its chief executive Laurent Freixe over Labor Day weekend after revelations of a romantic relationship with a direct subordinate, one detail stood out: He was shown the door without a severance package.
That, according to corporate-governance veteran Nell Minow, is almost unheard of in the C-suite.
“ That is really unusual,” she told Fortune . “I think that’s actually a badge of success for corporate governance, because that’s something investors have been concerned about for a long time: CEOs being dismissed and somehow getting to stay on.”
Nestlé confirmed to Fortune that Freixe will not receive a severance package.
For years, high-profile executives who crossed ethical lines have left with multimillion-dollar parachutes. Famously, Steve Easterbook,