Nestle puts pressure on underachievers with new bonus structure

Title Nestle's New Bonus Structure Fostering Excellence and Driving Growth in 2026

Introduction

In a move aimed at revitalizing its fortunes, Nestle has introduced a new performance measurement system designed to reward high achievers with lucrative bonuses while encouraging underachievers to improve. As part of CEO Philipp Navratil's efforts to revitalize the Swiss food giant, the company is simplifying performance evaluation, development planning, and employee feedback, with the ultimate goal of driving growth and shaping the future of muralists in 2026.

Background

Since taking the helm in September, Navratil has announced plans to refocus Nestle's portfolio on four major business areas, including a significant reduction in workforce. The company is also exploring opportunities to sell its remaining in-house ice cream business and offload certain water and vitamin brands. As part of this effort, Navratil has emphasized the importance of improving real internal growth (RIG) – or sales volumes growth – which stagnated at 0.8 percent in 2025.

The New Bonus Structure

Nestle's new performance measurement system features six levels, up from three previously. The top level, exemplary, rewards employees with as much as 150 percent of their bonus target, representing a significant increase from the previous 130-percent limit. Conversely, those awarded an unsatisfactory rating can expect to receive between 0 percent and 50 percent of their target.

Impact on Employees

The new system is expected to have a profound impact on employees at Nestle. Those who consistently meet or exceed performance targets will be rewarded with more lucrative bonuses, while those who fall short may see little to no reward. This increased pressure is intended to drive improvement and motivate employees to excel in their roles.

Simplifying Performance Evaluation

The new system simplifies performance evaluation by providing a clear framework for measuring employee performance. This should make it easier for managers to provide feedback and development planning, ultimately leading to improved employee engagement and retention.

RIG Gatekeeper

As part of the new system, Nestle has introduced a RIG gatekeeper – a minimum level of RIG that must be achieved in order to receive bonuses. This ensures that all employees are focused on driving growth and improving performance, rather than simply relying on luck or external factors.

Conclusion

Nestle's new bonus structure is designed to foster excellence and drive growth by putting pressure on underachievers while rewarding high achievers. By simplifying performance evaluation and introducing a RIG gatekeeper, the company aims to shape the future of muralists in 2026. As CEO Philipp Navratil continues to revitalize Nestle, it will be interesting to see how this new system plays out and what impact it has on employee morale and motivation.

Key Takeaways

• Nestle's new bonus structure features six levels, with top performers receiving up to 150 percent of their target


• The system introduces a RIG gatekeeper – a minimum level of growth that must be achieved in order to receive bonuses


• Simplified performance evaluation aims to make it easier for managers to provide feedback and development planning


• The new system is designed to drive improvement and shape the future of muralists in 2026

Keywords Nestle, bonus structure, performance measurement, RIG gatekeeper, employee motivation, morale, growth.

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