Korn Ferry Research Shows Retail Executive Bonuses are Increasing as Industry Experiences Year-Over-Year Growth
- Percentage of Retail Execs Who Received Targeted Bonus Amounts Nearly Doubled in 2018 -
Conversely, the percentage of retail executives who received no bonuses took a fairly dramatic drop year-over-year, with only 5 percent receiving no bonus in 2018, compared to 29 percent receiving no bonus the year prior.
2018 reverses a 5-year-trend of executives increasingly receiving no bonuses.
Retail Senior Executives
|Year||Percent Who Receive No Bonus|
The bonus increases correlate to better performance in the industry.
“Despite ongoing high-profile retail closures, the industry in general
is continually evolving to attract customers and increase financial
performance. That results in an increase in the size of bonuses
retailers are able to award their executives,” said
To continue to strive for increased profitability, as traditional brick and mortar retailers continue to face competition in e-commerce -- and new increases in minimum wage take a huge chunk of retailer profits -- some retailers are innovating to curb costs.
“We’re seeing a trend toward retailers taking a hybrid approach, with sales associates having access to the company’s e-commerce site to order product not in the store. There is also experimentation with showroom stores where consumers can see, touch and experience merchandise, but can then make their orders online,” said Rowley. “This gives consumers a chance to interact with a retailer and a brand, and also allows for smaller stores with less need for inventory space and sales personnel.”