Finance
Nestle puts pressure on underachievers with new bonus structure
Published by Global Banking & Finance Review®
Posted on February 25, 2026
2 min readLast updated: February 25, 2026
Quick Summary
Nestle overhauled bonuses with six performance tiers. Top performers can earn up to 150%, while low performers may get little or nothing as CEO Philipp Navratil links rewards to KPIs like a RIG gatekeeper.
Nestlé boosts top-performer bonuses, pares payouts for low achievers
Performance-Linked Bonus Overhaul
LONDON, Feb 25 (Reuters) - 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.
Job Cuts and Portfolio Focus
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.
Six-Tier Ratings and Payout Caps
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.
Employees attaining the highest, "exemplary" performance level could receive as much as 150% of their bonus target, up from a previous 130% limit. Those awarded an "unsatisfactory" rating will receive between 0% and 50% of the target, Nestle confirmed on Wednesday.
Evaluation and Feedback Process
The company said the system simplifies performance evaluation, development planning and employee feedback. Bonus targets vary across teams.
Bloomberg First Report
Bloomberg News first reported the news on Wednesday.
RIG Gatekeeper and Targets
Since Navratil's appointment, Nestle has been focused on improving its real internal growth (RIG) - or sales volumes growth - from the 0.8% level achieved in 2025.
"We have introduced a RIG gatekeeper into the bonus - this is a minimum level of RIG to be achieved," Navratil said when full-year results were announced last week, noting that bonuses for functional leaders were now linked to group performance to bring all teams behind one set of key performance indicators.
(Reporting by Alexander Marrow; editing by David Gaffen)
Key Takeaways
- •Nestle moves from three to six performance tiers to determine bonuses.
- •Top “exemplary” performers can receive up to 150% of bonus targets.
- •Lowest-tier staff may receive little to no bonus under the new system.
- •A RIG gatekeeper ties payouts to minimum sales volume growth metrics.
- •Changes align with CEO Philipp Navratil’s turnaround, including job cuts and portfolio focus.
Frequently Asked Questions about Nestle puts pressure on underachievers with new bonus structure
1What is the main topic?
Nestle introduced a six-tier performance system that increases bonus potential for top performers and reduces or removes payouts for underperformers as part of a broader turnaround.
2How much can top performers earn under the new plan?
Employees rated at the highest “exemplary” level can receive up to 150% of their bonus target, up from a previous 130% cap.
3Why is Nestle changing its bonus policy?
The overhaul supports CEO Philipp Navratil’s push for growth and accountability, linking bonuses to group KPIs such as real internal growth and aligning with portfolio streamlining and cost cuts.
