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Nestle puts pressure on underachievers with new bonus structure
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Nestle puts pressure on underachievers with new bonus structure

#Nestlé #Bonus structure #Performance measurement #Philipp Navratil #Corporate restructuring #Real internal growth #Employee evaluation

📌 Key Takeaways

  • Nestlé implemented a new 6-level performance system replacing the previous 3-level structure
  • Top performers can receive up to 150% of their bonus target
  • Underperformers will receive between 0-50% of their bonus target
  • The change is part of CEO Philipp Navratil's broader restructuring efforts

📖 Full Retelling

Nestlé has introduced a new system for measuring performance that will give high achievers more lucrative bonuses and little to no rewards for those falling short of standards, the company said on Wednesday in London, as CEO Philipp Navratil works to revitalise the Swiss food group's fortunes. The new structure increases performance evaluation levels from three to six, with top performers potentially receiving up to 150% of their bonus target while those rated 'unsatisfactory' will get between 0% and 50% of their target. Since his September appointment, Navratil has announced plans to cut 16,000 jobs and focused Nestlé's portfolio on four major business areas as part of a broader restructuring effort. The company also plans to sell its remaining in-house ice cream business and continues efforts to offload its water and some vitamin brands. 'We have introduced a RIG gatekeeper into the bonus - this is a minimum level of RIG to be achieved,' Navratil explained, noting that bonuses for functional leaders are now linked to group performance to bring all teams behind one set of key performance indicators as the company aims to improve its real internal growth from the 0.8% level achieved in 2025.

🏷️ Themes

Corporate restructuring, Performance management, Executive compensation

📚 Related People & Topics

Philipp Navratil

Philipp Navratil

Austrian-Swiss business executive

Philipp Navratil (born 1976) is an Austrian-Swiss business executive and has been the chief executive of Nestlé since September 2025.

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Performance measurement

Performance measurement

Process of collecting, analyzing and/or reporting information regarding performance

Performance measurement is the process of collecting, analyzing and reporting information regarding the performance of an individual, group, organization, system or component. Definitions of performance measurement tend to be predicated upon an assumption about why the performance is being measured....

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Restructuring

Act of reorganizing the legal, ownership, operational, or other structures of a company

Restructuring or Reframing is the corporate management term for the act of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable, or better organized for its present needs. Other reasons for restructuring include a change of own...

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Mentioned Entities

Philipp Navratil

Philipp Navratil

Austrian-Swiss business executive

 Performance measurement

Performance measurement

Process of collecting, analyzing and/or reporting information regarding performance

Restructuring

Act of reorganizing the legal, ownership, operational, or other structures of a company
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try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Nvidia, Salesforce earnings; U.S.-Iran nuclear talks - what’s moving markets Gold ticks up on softer dollar, markets eye US-Iran nuclear talks Nvidia’s results beat estimates, but Wall Street wants more cash return Nasdaq ends more than 1% higher as Nvidia rises pre-earnings, tech extends rebound (South Africa Philippines Nigeria) Nestle puts pressure on underachievers with new bonus structure By Reuters Stock Markets Published 02/25/2026, 01:33 PM Updated 02/26/2026, 04:06 AM Nestle puts pressure on underachievers with new bonus structure 0 NESN -0.08% LONDON, Feb 25 - Nestle has introduced a new system for measuring performance that will give high achievers more lucrative bonuses and little to no rewards for those falling short of standards, the company said on Wednesday, as CEO Philipp Navratil works to revitalise the Swiss food group’s fortunes. Since his September appointment, Navratil has announced plans to cut 16,000 jobs and focused Nestle’s portfolio on four major business areas. The company also plans to sell its remaining in-house ice cream business and is continuing efforts to offload its water and some vitamin brands. The KitKat and Nescafe maker’s new system for measuring performance increases the number of levels to six from three and increases the scope of potential financial rewards, Nestle confirmed on Wednesday. Employees attaining the highest, "exemplary" performance level could receive as much as 150% of their bonus target, while those awarded an "unsatisfactory" rating will receive between 0% and 50% of the target. The major change concerns the expansion in the number of levels. The company said the system simplifies performance evaluation, development planning and employee feedback. Bonus targets vary across teams. Bloomberg News first reported the news on Wednesday. Since Navratil’s appointment, Nestle has been focused on improving its real internal growth - or sales volumes growth - f...
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