New System Raises Bonuses to Up to 150%, Reduces Payments for Unsatisfactory Performances, and Integrates Strategic Plan Launched in September 2025
Nestlé announced on February 26, 2026, a significant change in its internal performance policy, as confirmed by the company itself and initially reported by Bloomberg News on Wednesday.
The global manufacturer of brands like KitKat and Nescafé has implemented a new performance evaluation system, which expands rating levels and significantly alters bonus payment rules.
The decision comes as part of the restructuring process led by CEO Philipp Navratil, who was appointed in September 2025 to revitalize the Swiss food group.
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Internal Restructuring Redefines Performance Criteria
Since his appointment, Navratil announced a corporate transformation plan with relevant structural measures.
Among them is the announcement of cutting 16,000 jobs, in addition to reorganizing the portfolio to focus on four major business areas.
Furthermore, the company announced its intention to sell the remainder of its in-house ice cream operation.
In parallel, Nestlé continues to work on divesting its water brands and some vitamin brands.
In this context, the new evaluation model emerges as part of a broader strategy for operational efficiency and results focus.
New System Expands Levels and Alters Bonuses
The previous system operated with three performance levels.
Now, however, the structure will feature six classification levels, enhancing the detail of evaluations.
Employees classified at the highest level, termed “exemplary”, will be eligible to receive up to 150% of the bonus target, exceeding the previous limit of 130%.
On the other hand, employees rated as “unsatisfactory” will now receive between 0% and 50% of the established target, as officially confirmed by Nestlé on February 26, 2026.
According to the company, bonus targets vary between teams, respecting the specifics of each area.
Company Seeks to Enhance Real Internal Growth
Since September 2025, Nestlé has also begun emphasizing the indicator known as real internal growth (RIG), which measures sales volume.
In 2025, according to corporate data released by the company itself, the RIG was 0.8%.
In light of this result, management seeks to boost organic performance in the upcoming operational cycles.
According to the company, the new system simplifies performance evaluation, development planning, and the feedback process.
The proposal, therefore, is to align individual targets with global strategic priorities.
Strategy Combines Financial Discipline and Operational Focus
The redesign of the bonus policy comes at a time of structural review for the company.
The plan announced since September 2025 combines cost reduction, portfolio reorganization, and greater discipline in performance management.
In this scenario, the new model reinforces the connection between individual results and corporate goals.
At the same time, the company maintains its commitment to adapt criteria according to the specifics of each team.
With this, Nestlé advances in its internal transformation strategy, seeking greater efficiency and sustainable growth.
In light of these changes, will the new bonus policy be able to stimulate sufficient productivity to elevate the company’s real internal growth in the coming years?

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