LONDON, Feb 25 (Reuters) – Nestlé has introduced a new performance appraisal system that will give more lucrative bonuses to top-performing employees and little or no reward for those who fail to meet standards, the company said on Wednesday, as Chief Executive Philipp Navratil works to revitalize the Swiss food group.
Since his appointment in September, Navratil has announced plans to cut 16,000 jobs and focus Nestlé’s portfolio on four major business areas. The company also plans to sell the remainder of its internal ice cream business and continues its efforts to divest its water brands and some smoothie brands.
The KitKat and Nescafé maker’s new performance assessment system increases the number of levels from three to six and expands the scope of possible financial rewards.
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Employees who achieve the highest performance level, “exemplary,” will be eligible to receive up to 150% of their target bonus, up from the previous limit of 130%. Those who receive an “unsatisfactory” recommendation will receive between 0% and 50% of the target, Nestlé confirmed on Wednesday.
The company said the system simplifies performance evaluation, development planning and employee feedback. Bonus goals vary between teams.
Bloomberg News first reported the news on Wednesday.
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Since Navratil’s appointment, Nestlé has focused on improving its real internal growth (RIG) — or sales volume growth — from the 0.8% level achieved in 2025.
(Reporting by Alexander Marrow)
