Dive Brief:

• Outdoor cooking product maker Traeger granted discretionary cash bonuses to its CEO and CFO in recognition of their “significant contributions” to the company and to promote retention, according to a Friday securities filing.
• The wood pellet grill manufacturer’s CEO, Jeremy Andrus, will receive a discretionary bonus of $956,250, while CFO Michael Joseph Hord will receive a $270,938 cash bonus, according to the filing with the Securities and Exchange Commission.
• The bonuses to both its top executive and finance chief come as the Salt Lake City, Utah-based company’s board of directors determined applicable performance goals under its 2025 annual cash incentive program were not met, resulting in no payments under that program to named executive officers, according to the filing.

Dive Insight:

Andrus has served as Traeger’s CEO since January 2014, according to his LinkedIn profile. He was eligible for an annual target bonus of 150% of his base salary for calendar year 2025, with his annual salary set at $750,000 as of Jan. 1, 2025, according to an updated employment agreement.  

Hord joined Traeger in 2021 as its VP of finance and strategy after a 16-year career at shoe brand Nike, where he served in roles including senior finance director, global business planning, according to his LinkedIn profile.

Hord has served as Traeger’s finance chief for approximately a year, succeeding previous CFO Dominic Blosil, according to a March 2025 filing announcing the CFO transition. In association with his appointment as CFO, Hord was eligible to receive a target bonus opportunity of 75% of his $425,000 annual base salary, according to the March 2025 filing.

The decision to forgo annual incentives for its NEOs comes as Traeger undertakes several moves to bolster its flagging stock price and curb widening losses, as it faces a number of risks to its businesses and financial health, outlined in its annual report for the year ended Dec. 31.

Among other risk factors, Traeger flagged “substantial indebtedness” which could materially and adversely affect its financial condition, according to the report filed March 6. As of the end of its fiscal year, the company reported $19.6 million in cash and cash equivalents, a $112.5 million borrowing capacity, and total principal outstanding debt of $403.3 million.

The business also flagged significant rising costs for raw materials relating to its wood pellet facilities and U.S. tariff and trade policies, which could have a material impact on its business.

Volatile stock prices and a decline in demand from top retail buyers may also prove detrimental, the company said. Traeger derives much of its retail revenue from three retailers.  

The pellet grill maker has also struggled with widening losses, reporting a $115.2 million net loss for its full-year 2025, according to its earnings report published Mar. 5. This compares with a $34 million net loss for the prior year, and is “inclusive of a $74.7 million goodwill impairment,” according to its earnings release.  

Going into 2026, the company’s “focus is on inventory alignment, cost discipline, and cash generation,” Hord said in a statement included in the release. That includes continuing its Project Gravity” cost-saving initiative begun in May 2025, where progress has helped to build out a “solid financial foundation,” he said in the statement.

Under the initiative, the company has taken steps such as laying off staff, shutting down its Costco roadshow program and exiting its direct-to-consumer business: recording $24.9 million of total restructuring and other costs related to those actions for its fiscal 2025, according to its annual report. Traeger expects to complete its restructuring by the end of its fiscal 2026.

However, the company in its annual report also flagged risks related to its restructuring efforts, noting “We may not realize the anticipated benefits of our multi-step strategic optimization plan, Project Gravity, and the related reduction in force and operational centralization may adversely affect our business, results of operations, and culture.