Shares at Nestle fall after its CEO is fired. Live from the UK, this is the Marketplace Morning Report from the BBC World Service. Hello, I'm Nick Qureshi.

Chairs in Swiss food giant Nestle dropped 2%, following the departure of its CEO after the company said he failed to disclose a romantic relationship with an employee.

The sudden departure of Laurent Frex threatens more volatility for the Kit Kat maker.

The BBC's Davina Gupta is following developments for us.

Hi, Davina.

Hi, Nick.

This is rather unusual. What's going on? Nestle, of course, is the global giant, which is behind

Kit Kat, Nespresso capsules. And now its CEO, Laurent Frex, is out after less than a year in the top

job. And it comes down to an alleged relationship with the subordinate. Nestle says that he crossed the line under its code of conduct.

The whole thing Nick started earlier this year with a complaint through the company's whistle-blowing channel.

At first, Nestle did an internal investigation and actually cleared him.

But then concerns kept surfacing.

They kept getting more complaints. So they brought in an outside

investigation team. And that second probe upheld the allegation. And that's what forced his resignation.

Nestle says the relationship created a conflict of interest. They also confirmed that Mr.

Frex won't be walking away with any kind of exit package.

That's after working for 40 years in the company. What does this mean for Nestle, DeVina?

Well, Mr. Frex was trying to consolidate the business and move away from the distractions,

as he called it, from the core business. Now it's disruptive for a

company of this size because the top boss has been let go off. But a larger question, perhaps,

Nick here is also about corporate governance. Bernard Looney, who led BP, resigned last year after

admitting that he hadn't been fully transparent about relationships at work.

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