No Bonuses For Most Retail Executives As Sales Slump
Recent retail headlines have not inspired much confidence in the sector’s future. More than 5,400 retail store closures have been announced this year so far, up 165 percent from 2016, with 10 major retailers filing for bankruptcy, according to Fung Global Retail & Technology. There are certainly retailers opening stores — nearly 3,300 by Fung Global Retail & Technology’s count — but the closures still far outpace openings. While most retailers have yet to report second-quarter sales, many analysts expect revenues to remain restrained. The dour retail trends are hitting the companies’ CEOs right where it hurts, in their bank accounts. In a pay-for-performance industry, fewer and fewer retailers are rewarding their executives with bonuses. According to new research from retail recruiting and organizational consulting firm Korn Ferry, 73 percent of North American of retailers with annual sales between $1 billion and $50 billion paid little to no bonuses to senior executives this year for last year’s performance. Read more at CNBC.
