Target reportedly doubling salaried employees' bonuses
Target is reportedly doubling bonuses for salaried employees, per a Bloomberg report, which cited people familiar with the matter.
The report noted that Target will pay 100% of employees’ eligible 2023 bonuses, up from 50% the year prior.
The hike in bonuses follows three consecutive quarters of sales declines.
Target’s profits increased higher than it was expecting last year, providing $2 billion in operating income from which to give out bonuses. Bonuses at Target typically max out at 175% of eligible amounts, per the report.
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The increased payouts don’t apply to hourly employees, and senior executives have a separate bonus structure, according to the report. Cash bonuses will be payable at the end of March.
Target did not disclose its potential bonus ranges or how many of its roughly 415,000 employees are eligible, the report noted. Most Target workers are hourly store and distribution-center employees. “The bonus structure is informed by goals set at the beginning of the fiscal year and includes sales performance and profit outcomes,” Target spokesman Brian Harper-Tibaldo said, per the report.
The report also noted that in recent weeks, Target's shares rose 12% after the company disclosed better-than-expected earnings attributable to lower inventory levels and supply-chain costs. The retailer also announced plans to launch a paid membership program as well as plans to open and renovate hundreds of stores. Additionally, store and digital traffic are improving, though still in the red. Target now expects comparable sales to return to growth in the second quarter, per the report.