Nestlé is changing how it gives out bonuses to its employees. Instead of the old three-level system, it now ranks staff in six performance categories. That means top performers can earn more, while those who don’t meet expectations may get much less—or nothing.
In the past, nearly everyone got at least 80 per cent of their bonus, even if they only met basic standards. Now, employees rated “exemplary” can receive up to 150 per cent of their target bonus, up from 130 per cent. But those rated “unsatisfactory” might get just 50 per cent, or no bonus at all!
The change comes under new Philipp Navratil, who took over as CEO in September 2025. He wants to push for stronger growth and clearer accountability. He’s said that it should be obvious who’s doing well and who isn’t, and that everyone—including himself—will be judged by the same standards.
Nestlé recently predicted growth in sales and profits, despite challenges such as high costs, falling volumes, and a major infant formula recall. Navratil emphasised that “real internal growth”—a measure based on product volume—will now play a key role in deciding bonuses. Bonus payouts will be tied more closely to group, division, and individual performance.
This shift mirrors moves by other companies, such as Unilever, which is cutting about 25 per cent of its top managers and linking bonuses to department results rather than company-wide performance. Only 55 per cent of its staff reportedly now earn between 80 and 120 per cent of their bonuses, down from 90 per cent.
