Peloton is looking to make a comeback & is offering cash bonuses to employees who are willing to stay along for the ride
The number of workers quitting their jobs remains high, and Peloton is paying attention. According to CNBC, Peloton is repricing stock options and offering cash bonuses to employees in order to keep its workforce happy and boost morale for a comeback.
Peloton has been busy ever since new CEO Barry McCarthy took over for John Foley earlier this year. At the time, McCarthy told employees that he was there “for the comeback story,” and has publicly maintained optimism despite setbacks for the connected fitness company.
Shari Eaton, Peloton’s chief people officer, said the fitness platform is implementing such employee-focused plans so that Peloton employees can benefit during the company’s comeback, as CNBC reports.
According to internal memos obtained by CNBC, eligible employees will have their post-IPO options repriced to Peloton’s closing price on July 1 of $9.13. Hourly employees at Peloton will be eligible for a one-time cash bonus to be paid before the end of February if they stay with the company until January 23. The bonus amount will vary across the company.
Peloton is also accelerating its vesting requirement by one year, allowing employees to access the value of the stock units sooner, CNBC reports. This modification doesn’t apply to top executives or hourly Peloton employees.
The connected fitness company also told its employees that it has wrapped up its first pay equity study with Aon, a third party consultant. The study revealed that 206 employees had a pay disparity – a finding that Peloton said it corrected immediately.
Peloton has revealed lofty ambitions. In a letter to shareholders, McCarthy noted that turnarounds are hard work, referring to it as a “full contact sport,” but has indicated that the connected fitness company is aiming for 100 million members.
The news of cash bonuses and re-priced stock options comes just months after plant layoffs and the announcement that 2,800 employees would be departing the company.
Courtney Rehfeldt has worked in the broadcasting media industry since 2007 and has freelanced since 2012. Her work has been featured in Age of Awareness, Times Beacon Record, The New York Times, and she has an upcoming piece in Slate. She studied yoga & meditation under Beryl Bender Birch at The Hard & The Soft Yoga Institute. She enjoys hiking, being outdoors, and is an avid reader. Courtney has a BA in Media & Communications studies.