Lowe’s will follow rival Home Depot in giving thousands of its hourly employees a one-time bonus of up to $1,000 due to brand new tax legislation, according to an internal company memo reviewed by CNBC on Wednesday.
The bonuses will be based on an employee’s length of service with Lowe’s, along with more than 260,000 part- along with full-time individuals are set to receive the payouts, the company said. Lowe’s declined to comment on how the bonuses might be broken out based on tenure.
Effective May 1, Lowe’s will also be expanding its benefits package for full-time workers to include paid maternity leave for 10 weeks, paid parental leave For just two weeks, adoption assistance of up to $5,000, along with faster eligibility for health benefits, the memo said.
“We’ll continue to make investments to improve the employee along with customer experience,” Lowe’s wrote to its workers.
The company said the item will provide more details on those investments within the coming weeks. Lowe’s is usually set to report fourth-quarter earnings Feb. 28.
Lowe’s at This specific point marks one of many companies, along with notably many retailers, touting bonuses along with wage hikes in 2018. however the labor market for retail businesses is usually increasingly under pressure, generating the item more necessary for companies to attract along with keep talent with incentives like these.
The news comes just days after Lowe’s board approved a stock repurchase program of up to $5 billion. The company also just recently nominated two independent board members along with plans to add a third following “constructive” talks with hedge fund D.E. Shaw Group, which at This specific point maintains an activist stake within the home improvement chain.
D.E. Shaw is usually concerned about Lowe’s performance relative to its peers, sources have told CNBC. Shares of Lowe’s are up about 43 percent via a year ago, while Home Depot’s stock has soared roughly 46 percent over the same period.