Walmart to Award Store Managers Bonuses of Up to $20,000 in Stock
Walmart, the country’s largest private employer, announced on Monday that managers of its stores across the United States will receive annual bonuses of up to $20,000 in company stock starting in the new fiscal year. This compensation scheme provides the possibility for top-performing store managers to earn more than $400,000 per year.
The company’s strategy to improve benefits for its store managers is aimed at retaining its workers and attracting new employees in a highly competitive labor market. It is noteworthy that the compensation will not take into account the educational level of its employees.
Walmart Chairman and CEO Brian Furner made a video announcement stating that the amount of stock bonuses is based on the format of the store where the manager works. Managers of the Supercenter stores will receive bonuses of $20,000 in stock, while those responsible for the smaller ‘Neighborhood Market’ stores and “division 1” stores will receive $15,000 in shares. Finally, those who run the Hometown stores will receive $10,000 in stock per year.
In addition to the stock bonuses, Walmart previously announced a new average salary of $128,000 and the ability for managers to earn up to twice that salary in bonuses. This means that a manager at a Walmart Supercenter could earn up to $404,000 a year.
“A Walmart store manager runs a multimillion-dollar business and manages hundreds of people, and it’s a much more complex job today than when I managed a store,” Furner explained. “We asked our managers to act as owners, and now, they will literally be owners,” the executive added.
It is observed that Walmart managers face increasingly complicated job responsibilities, particularly due to the acceleration of online services like “buy online and pick up in stores,” which has been heightened by the pandemic. This has given rise to greater challenges for store leaders as they now have to balance inventory for both in-store and online customers.
Walmart is also making efforts to change pool of its managers by seeking college graduates to help fill their management positions. Although about 75% of Walmart managers started as hourly workers with the company and did not graduate from college, this move indicates a shift in strategy.
The stock price of Walmart has increased by 15% over the past 52 weeks, reflecting positively on the company’s performance. The shares closed Friday at $164.27 per share, up 1%, or $1.43, compared to Thursday.
The story is developing and will be updated with new information.