Hermès gives $5,000 bonus to every worker as profits surge

Luxury powerhouse Hermès, renowned for its iconic Birkin bags, has announced a generous bonus of approximately €4,500 ($4,850) for each of its 25,000 employees worldwide. This move comes as part of the company's commitment to its "social model" following an exceptional year of financial performance in 2024.

The total bonus payout amounts to €112.5 million ($121 million), representing a 12.5% increase from the previous year's €4,000 bonus. This substantial reward underscores Hermès' dedication to sharing its success with its workforce.

Hermès reported impressive financial results for 2024, with consolidated revenue reaching €15.2 billion, marking a 15% increase at constant exchange rates and 13% at current exchange rates compared to 2023. The company's recurring operating income hit €6.2 billion, accounting for 40.5% of sales.

Axel Dumas, Executive Chairman of Hermès, commented on the results: "In 2024, in a more uncertain economic and geopolitical context, the solid performance of the results attests to the strength of the Hermès model and the agility of the house's teams, whom I thank warmly."

This generous bonus aligns with Hermès' longstanding commitment to employee well-being and development. The company offers a comprehensive benefits package that includes performance-related bonuses, profit-sharing schemes, and long-term employee stock ownership plans. Additionally, Hermès provides various social benefits such as health coverage, maternity leave support, and supplementary pension plans.

The luxury brand's focus on its workforce has not gone unnoticed. Hermès has been highly ranked on Glassdoor, securing the top positions for employee satisfaction in recent years. The company's commitment to its employees extends beyond financial rewards, encompassing training and development initiatives like the École Hermès des savoir-faire, which offers professional qualifications in leather craftsmanship.