Target, headquartered in Minneapolis, plans to double bonus payments to salaried employees this year as the retailer’s profits rebound after a challenging nearly two-year period.
Salaried employees at Target receive an annual bonus, determined by the company’s performance and the eligible amount allocated as part of their compensation package. According to a company spokesperson, Target will now pay 100% of employees’ eligible annual bonus amounts for the most recent fiscal year, marking an increase from the prior year’s 50%.
The annual bonus payout is contingent on Target’s performance against sales and profit objectives established at the start of the fiscal year, as outlined in a statement by the company.
Target will distribute the annual cash bonuses in late March, with each employee eligible for a maximum payout of 175% of their eligible bonus amount.
While the majority of Target’s workforce, approximately 415,000 employees including those in stores and warehouses, are paid hourly and do not qualify for bonuses, the retailer does provide bonuses to store and supply-chain leaders, as well as certain corporate employees. Notably, top executives at Target operate under a distinct bonus structure.
The increased bonus payout was initially disclosed by Bloomberg.
Target’s Performance Outlook
Despite facing challenges such as inventory issues, reduced discretionary spending, elevated supply chain costs, and increased theft over the past two years, Target has managed to improve profits and margins. The retailer’s focus on inventory management and a decline in certain costs, such as freight expenses, have contributed to this improvement.
Looking ahead, Target projects that sales challenges will persist, with comparable sales expected to remain flat to up 2% for the full year 2024. However, the company anticipates adjusted earnings per share for the fiscal year to range from $8.60 to $9.60, potentially surpassing the previous fiscal year’s adjusted earnings per share of $8.94.”
Tags: Employees Performance Profit Target
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