In a new filing [PDF] with the Securities and Exchange Commission, the Texas-based retailer stated that CEO Joe Magnacca will be the recipient of a nice $500,000 retention bonus as he tries to right the sinking ship.
And Magnacca won’t be alone. The company’s Chief Financial Officer, head of Human Resources, the exec. VP of Store Operations, and the senior VP of something described as “Store Concepts” will each receive bonuses ranging from $187,500 to $275,000. In total, the bonuses add up to $1.4875 million.
The company states that it decided to honor the bonuses “after giving due consideration of the skills and talent deemed critical to the Company’s business turnaround efforts currently underway, the difficult business environment and the competition for skilled, talented employees.”
In order to get the bonuses though, each of these execs must stay with the Shack through March 1 of 2015.
To entice Magnacca into doing more than just riding out the next year in order to cash that bonus check, the company is tempting him with the dangled carrot of another $600,000 based on “the achievement of performance based strategic initiatives relating to the fiscal year 2015 turnaround plan.”