Some big businesses are boasting about $1,000 bonuses for their employees. But, when you look beyond the hype, most workers at these companies are getting much less.
Shrinking Bonuses. For instance, at Home Depot, only workers with at least 20 years at the company are receiving the full $1,000 bonus. Those longest-serving employees are almost certainly in the minority. The median tenure of retail workers is around three years, giving those workers a $250 bonus under Home Depot’s scheme; workers at Walmart and Lowe’s with three years’ service are getting $200 to $250.
$15 Billion for Shareholders. Meanwhile, just before Congress passed the corporate tax cuts, Home Depot announced a $15 billion share buyback, amounting to about $12.50 per share for investors. So, even small investors with $1,000 in Home Depot stock will get more than employees.
Longtime Workers Get 48 Cents an Hour. While extra money is always welcome, even a $1,000 bonus amounts to 48 cents an hour over a year. And, unlike raises, these bonuses aren’t built into the pay scales.