Peloton improves pay incentives to boost morale

Peloton improves pay incentives to boost morale

Peloton has sweetened its incentives for workers with one-time cash bonuses and changes to its stock compensation plan as the company fights to retain employees and fix its struggling business. Barry McCarthy, a former Spotify and Netflix executive has been working for the last five months to boost the morale at Peloton as part of a turnaround plan. In early February, McCarthy was CEO of Peloton, replacing John Foley as the company's expenses spiraled out of control and the demand for their bikes waned. 

Peloton had cut 2,800 jobs or about 20% of corporate positions back then. Now, however, the company says that it is taking action so employees can benefit as the company works on its turnaround efforts, Shari Eaton, Peloton’s chief people officer says, "The extraordinary circumstances that we find ourselves in now really give us that chance to pause and look at what it is that we can do to ensure future success."

According to an internal memo, Peloton told employees that eligible team members would have their post-IPO options repriced to Peloton’s closing price on July 1 of $9.13. For employees who do not want stocks in the company. Instead of an equity grant, Peloton's hourly workers will be eligible for a one-time cash bonus in September. Many of the company’s hourly employees have said they would prefer to receive cash compensation over longer-term equity grants. 

Source: CNBC

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