Instacart Inc. will pay out its first companywide cash bonuses starting in December, said people familiar with the matter, as the grocery delivery provider aims to motivate staff after delaying its initial public offering.
The cash bonus is a shift in the company’s efforts to reward and retain employees. Instacart has historically given out equity rewards to boost retention.
The San Francisco company told employees last month that going public was unlikely this year due to tumultuous market conditions. Chief Executive Fidji Simo said at the time that the company was offering a special cash bonus to reward staff, and that Instacart is finding additional ways for employees to get value.
Employees received the terms of their bonuses late last week and are expected to receive 40% of the payment on Dec. 9 with the remainder paid in June 2023, some of the people said. Staff will still receive the bonus if the company goes public before the payout dates, they said.
An expanded version of this report appears on WSJ.com.
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