Report: Peloton Repricing Stock Options & Offering Cash Bonuses to Employees in Effort to Boost Morale

CNBC is reporting that Peloton is rolling out employee pay incentives in an effort to boost morale amongst its workforce. Peloton will reprice stock options for eligible employees and offer a one-time cash bonus to hourly employees.

According to internal memos obtained by CNBC:

Peloton told employees that eligible team members will have their post-IPO options repriced to Peloton’s closing price on July 1 of $9.13.
As an example, Peloton said options granted on March 1 had an exercise price of $27.62, meaning they were “underwater,” and employees were not benefiting financially until the stock passed that threshold. After the repricing, Peloton employees will be able to exercise their options after the price passes $9.13.

In addition, Peloton is reportedly enabling employees to access the value of their stock units sooner by “accelerating the vesting requirement by one year for eligible unvested restricted stock units that have more than eight vesting dates left in their vesting schedule.” This update does not apply to top executives or hourly employees, however.

For hourly employees, Peloton will offer a one-time cash bonus to be paid by the end of February (as long as they stay with the company through January 23). The exact amount will vary.

Finally, Peloton also conducted a payscale analysis via Aon, a third party consultant:

The company said it identified less than 4% of its workforce, or 206 people, had a base pay disparity relative to peers that could not be explained by factors such as level of work, geography or tenure. Peloton said it took immediate action to eliminate the disparities.

It has been a tumultuous past few months for Peloton employees. 2,800 jobs were eliminated when founder and former CEO John Foley stepped down in February. Showroom employees also received a dramatic pay reduction last December. This followed a company-wide hiring freeze put into place the month prior.

You can read the full report from CNBC here.

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Katie Weicher
Katie Weicher is a writer for Pelo Buddy. She purchased her Peloton Bike in 2016 and has been riding, strength training, and yoga flowing ever since. You can find her on the leaderboard at #kweich.

1 Comment

  • Paul Cairns says:

    I agree with the bonus, but the repricing of the stock is a bad idea…people, like myself, get into these situations with their eyes open…the stock could go up and it can come down…there is risk and no guarantees…sometimes it goes your way and other times it doesn’t…that’s what we sign up for

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