Target is ratcheting up bonuses for salaried employees, including leaders in stores and across supply chains, thanks to a surge in profits.
The move comes thanks to $2 billion in additional profit growth for 2023, a company spokesperson said in a statement Thursday.
Target’s stock surged in November after having fallen for much of 2023 as the company reported it had lowered costs to offset a slowdown in consumer discretionary spending. Since mid-November, Target’s shares have climbed 54%.
The company spokesperson confirmed that eligible Target employees received 100% of their 2023 bonuses, up from 50% the previous year.
“We’re rewarding our team accordingly,” the spokesperson said.
In-store managers and supply-chain operation leaders are among those who will get the increased bonuses, the statement said.
Bloomberg first reported the news.
The profits bump is part of a trend of stronger earnings growth for companies across the board as inflation cools and labor productivity surges to all-time highs.
On Thursday, stock indexes closed at all-time highs.
The bonuses don’t apply to Target’s hourly employees, whose pay starts at $15 an hour except in markets like California, where it rises to $19.75. That compares with a starting hourly wage of $14 for Walmart workers.