Nestle Compensation

Policies
By HUMSI SINGH
 About
The presentation gives an overview of the
c o m p e n s a t i o n p o l i c i e s o f N e s t l e .T h e p r e s e n t a t i o n
will include the following :

• Introduction of compensation
management.
• Introduction of Nestle.
• Objectives of the Company.
• Compensation Policies of the
company.
• Conclusion.

Add a footer 2
 FR
Compensation Management
What is compensation management and how can it
benefit your organization?

Compensation management is the practice of the

organization that involves giving monetary as well
as non-monetary rewards to the employees, in
order to compensate for the time they allocate to
their job.
Compensation management involves “maximizing
t h e r e t u r n o n h u m a n c a p i t a l .”

Add a footer 3
 Objectives of Compensation FR
Management

• To Attract Top Talent

• To Retain & Reward Personnel
• To Boost Motivation
• To Be Compliant
• To Maximize ROI
• To Reduce High Employee Turnover
• To Reduce Cost

Add a footer 4
 FR
Nestlé
B a s i c i n t r o d u c t i o n o f t h e c o m p a n y.

Type Public

Industry Food processing

Founded 1866; 153 years ago

Founder Henri Nestlé

Headquarters Vevey, Vaud, Switzerland

Products Baby food, coffee, dairy products, breakfast cereals, confectionery, bottled water, ice
cream, pet foods
Revenue CHF91.43 billion (2018)

Subsidiaries Nestlé Pakistan

Add a footer 5
 FR
Compensation Policies of Nestle
Remuneration Policy
This Remuneration Policy relating to remuneration for the directors, key managerial
personnel and other employees, has been formulated by the Nomination and
Remuneration Committee (hereinafter “Committee”) and approved by the Board of
Directors.
OBJECTIVES:
The objectives of this policy is to stipulate criteria for:
• Appointment, reappointment, removal of Directors, KMP(s) and Senior Management.
• Determining qualifications, positive attributes and independence of a director and recommend to the Board.
• Retain, motivate and promote talent and to ensure long term sustainability of talented managerial persons and
create competitive advantage to run the operations of the Company successfully.
• Consider and determine the remuneration, based on the fundamental principles of payment for performance,
for potential, and for growth.

Add a footer 7
 CRITERIA FOR APPOINTMENT FR
The appointment shall be based on the followings criteria:
• Ethical standards of integrity and probity, qualification, expertise and experience of the person for
appointment.
• Age, number of years of service, specialized expertise and period of employment or association with
the Company.
• Special achievements and operational efficiency which contributed to growth in business in the
relevant functional area
• Constructive and active participation in the affairs of the Company
• Exercising the responsibilities in a bona fide manner in the interest of the Company
• Sufficient devotion of time to the assigned tasks
• Diversity of the Board
• Demonstrable leadership qualities and interpersonal communication skills, devote to the role,
compliant with the rules, policies and values of the Company and does not have any conflicts of
interest
• Transparent, unbiased and impartial and in accordance with appropriate levels of confidentiality
• Appointment of Directors and KMPs in compliance with the procedure laid down under the provisions
of the Companies Act, 2013, rules made thereunder or any other enactment for the time being in
force

Add a footer 8
 CRITERIA FOR REMUNERATION FR
The Remuneration Policy reflects on certain guiding principles of the Company such as aligning remuneration
with the longer term interests of the Company and its shareholders, promoting a culture of meritocracy and
creating a linkage to corporate and individual performance, and emphasizing on line expertise and market
competitiveness so as to attract the best talent.

It also ensures the effective recognition of performance and encourages a focus on achieving superior
operational results. The level and composition of remuneration shall be reasonable and sufficient to attract,
retain and motivate the directors, key managerial personnel and other employees of the quality required to
run the Company successfully. The relationship of remuneration to performance should be clear and meet
appropriate performance benchmarks. The remuneration to directors, key managerial personnel and senior
management personnel should also involve a balance between fixed and incentive pay reflecting short and
long term performance objectives appropriate to the working of the Company and its goals. The
remuneration of the Non-Executive Directors shall be based on their contributions and current trends,
subject to regulatory limits.

Sitting fees is paid for attending each meeting(s) of the Board and Committees thereof. Additionally equal
amount of commission is paid to Non-executive directors on a pro-rata basis, within limits approved by
shareholders.

Add a footer 9
 Conclusion
Smart employers know that keeping quality
employees requires providing the right
compensation and benefits package.
Compensation includes wages, salaries,
bonuses and commission structures. Employers
shouldn't ignore the benefits portion of employee
compensation and benefits, because the benefits
sweeten employment contracts with the priorities
that most employees need.
FR

11