Quick Look

  • Outdoor cooking products maker Traeger said in a securities filing Friday that it awarded discretionary cash bonuses to its CEO and CFO in recognition of their "significant contributions" to the company and to promote retention.
  • The wood-pellet grill maker's CEO Jeremy Andrus will receive a discretionary bonus of $956,250, while CFO Michael Joseph Hord will receive a cash bonus of $270,938, according to the filing with the U.S. Securities and Exchange Commission.
  • According to the filing, the board of the Salt Lake City, Utah-based company determined that the applicable performance goals under its 2025 annual cash incentive plan were not met, and therefore no payments were made to named executive officers under the plan. Despite this, the company still awarded bonuses to its two top executives.

Deep Dive

According to Andrus's LinkedIn profile, he has served as Traeger's CEO since January 2014. Under an updated employment agreement, he is eligible for an annual target bonus equal to 150% of his base salary for the 2025 calendar year, with his annual salary set at $750,000 effective January 1, 2025.

Hord joined Traeger in 2021 as Vice President of Finance and Strategy, after spending 16 years at footwear brand Nike, where he held roles including Senior Director of Finance and Global Business Planning, according to his LinkedIn profile.

According to a CFO transition filing from March 2025, Hord has served as Traeger's head of finance for about a year, succeeding former CFO Dominic Blosil. The filing showed that Hord, upon being named CFO, was eligible for a target bonus opportunity of 75% of his $425,000 annual salary.

The decision to forgo annual incentive payments to named executive officers comes as Traeger takes multiple steps to boost its depressed stock price and curb widening losses. The company outlined numerous risks to its business and financial health in its annual report for the year ended December 31.

Among other risk factors, Traeger noted that "substantial debt" could have a material adverse effect on its financial condition, the report filed March 6 said. As of the end of its fiscal year, the company reported cash and cash equivalents of $19.6 million, borrowing capacity of $112.5 million, and total outstanding principal debt of $403.3 million.

The company also noted that significantly increased raw material costs related to its wood-pellet facilities, as well as U.S. tariffs and trade policies, could have a material impact on its business. The company said stock price volatility and declining demand from major retail buyers could also have adverse effects. Traeger derives most of its retail revenue from three retailers.

The wood-pellet grill maker also faces widening losses, with its March 5 earnings report showing a net loss of $115.2 million for fiscal 2025, compared with a net loss of $34 million the prior year, and "including a $74.7 million goodwill impairment," according to the report.

Looking ahead to 2026, the company's "focus is on inventory discipline, cost discipline, and cash generation," Hord said in a statement in the earnings report. This includes continuing the "Project Gravity" cost-saving initiative that began in May 2025, whose progress has helped build a "solid financial foundation," he said in the statement.

Under that initiative, the company has taken measures including layoffs, ending its Costco roadshow program, and exiting its direct-to-consumer business: restructuring and other costs related to these actions totaled $24.9 million in fiscal 2025, according to its annual report. Traeger expects to complete the restructuring by the end of fiscal 2026.

However, the company also noted risks related to the restructuring efforts in its annual report, saying "we may not realize the expected benefits of our multi-step strategic optimization initiative, 'Project Gravity,' and the associated workforce reductions and operational centralization could adversely affect our business, results of operations, and culture."