Electronics giant Philips is to increase the use of cash bonuses in an effort to boost staff performance, the Financieele Dagblad reports on Monday.

CEO Frans van Houten wants between 7% and 12% of annual salary to be performance-related – both on an individual and company-wide level, the paper says. In some cases, this means the current bonus percentage will more than double.
The new system, which will apply to all 14,000 workers in the Netherlands, has been put to unions and the works council for consideration.
The paper says the move has been prompted by Van Houten’s wish to boost entrepreneurship at Philips, which he believes has become too bureaucratic. And research by salary specialists Hay shows that multinationals such as Shell and Unilever offer better pay to young talent.
At chip maker ASML, for example, some 20% of salary is performance-based. This year the company divided up €50m in bonuses between its staff of almost 7,000, the FD says. ASML used to be part of Philips.