Target is doubling its bonuses this year after profits beat the company's expectations during fiscal year 2023.
The Minneapolis-based retail behemoth is planning to pay 100% of eligible 2023 bonuses to salaried employees, the company confirmed to FOX Business. Last year, it was 50%.
Target confirmed that the company's bonus structure hasn't changed but that it is increasing payouts due to its profit outcomes even though sales dipped.
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"The bonus structure is informed by goals set at the beginning of the fiscal year, and includes sales performance and profit outcomes," Target spokesperson Brian Harper-Tibaldo told FOX Business. "Based on Target’s performance in 2023, including the $2 [billion] in additional profit growth our team delivered that exceeded the goals we set at the beginning of the year, we’re rewarding our team accordingly."
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The company didn't disclose how many of its employees are eligible but that the increased payouts don't apply to hourly workers, who make up the majority of its more than 400,000 employees.
"Like many companies, Target offers a bonus plan for select employees, including leaders in our stores and supply chain operations, that is designed to reward their performance in driving our results," Harper-Tibaldo said.
It was still a challenging year for the company, which faced a decline in in-store visits and a dip in sales at stores open for at least a year.
Michael Fiddelke, Target's CFO and COO, said the company is still "planning cautiously" heading into 2024, given the consumer-spending patterns the company has seen over the past two years.
"More specifically, on the discretionary side of our business, even as we have seen improving trends over the last two quarters, overall demand remains soft," he said.
The company expects same-store sales to decline between 3% and 5% in the first quarter.
