Nestle Revamps Performance Metrics to Drive Ambitious Growth

Nestle introduces a revamped performance measurement system under CEO Philipp Navratil, enhancing bonus incentives for high achievers. The company restructures its business focus and implements new performance evaluation levels. Bonuses for leaders are linked to group performance to drive cohesive growth.

Nestle has rolled out an overhauled system to measure employee performance, aimed at rewarding top performers with greater bonuses, a move part of CEO Philipp Navratil's broader strategic efforts to reinvigorate the Swiss food giant's prospects.

Under this new framework, the number of performance levels has expanded from three to six, allowing for more nuanced evaluations. High achievers can earn up to 150% of their bonus target, while those deemed unsatisfactory might receive as little as nothing, Nestle announced.

Since Navratil's appointment in September, Nestle has sharpened focus on four principal sectors, announced cuts affecting 16,000 jobs, and is looking to sell off its remaining ice cream and certain water and vitamin brands. The firm seeks to elevate its real internal growth beyond the 0.8% hit in recent years.

(With inputs from agencies.)