Retail / news
Ralph Lauren Ties Executive Bonuses to AI Metrics as Retail Lags Tech
Ralph Lauren has added AI metrics as a factor in executive incentive payouts, a rare move in retail even as AI-linked goals appear in more S&P 500 compensation plans.
The company disclosed the change in a 131-page filing with the US Securities and Exchange Commission, placing AI alongside more traditional business measures that can adjust annual incentive payouts. A Ralph Lauren spokesperson said the update reinforced to executives the "opportunities for leveraging AI to enhance our work."
AI-related goals remain uncommon in corporate incentive plans overall, and rarer still in retail. About 12% of S&P 500 companies disclosed such goals in their executive incentive plans this year, up from 5% in 2024, but many of those businesses are technology firms such as Salesforce and IBM.
Within retail specifically, linking AI usage to executive compensation is still largely unheard of. Recruiters say they see few signs of companies connecting AI to offers of higher pay.
The gap reflects where many brands and retailers stand on the technology. While more of them are adopting AI in various ways, many remain in an experimentation phase and are unsure how to connect it to long-term goals beyond cutting costs.