Walmart adding store manager perk after hiking pay, bonuses
Walmart will start giving its store managers stock grants this year on top of new pay raises, the retailer announced Monday.
Why it matters: It's the latest move by the nation's largest private employer and retailer to retain and reward managers in a competitive labor market.
- Walmart has not offered this benefit to store managers before, company officials said.
Driving the news: Walmart U.S. CEO John Furner told store managers at a company meeting in Houston that they'll receive an annual stock grant of up to $20,000 starting this April.
- "A Walmart store manager is running a multimillion-dollar business and managing hundreds of people. It's a far more complex job today than when I managed a store," Furner said in a video posted on LinkedIn.
Of note: Furner said on a call with reporters that staffing turnover levels across the entire business "stabilized quite a bit post-2022."
The big picture: Walmart confirmed to Axios that all levels of management above the store manager level on the store side already receive annual stock grants.
- On the supply chain side, Walmart distribution and fulfillment center general managers and management levels above them receive annual stock grants.
By the numbers: The amount of a manager's annual stock grant is based on store format, Walmart said.
- Store managers of Supercenter locations get $20,000.
- Managers of neighborhood market and Division 1 stores of 70,000-plus square feet will get $15,000.
- Managers at Hometown stores — locations under 70,000 square feet — will get $10,000 grants.
Walmart manager pay increase 2024
Flashback: Walmart unveiled on Jan. 18 that it was increasing store managers' pay, hiking the current average manager salary from $117,000 to $128,000 starting Feb. 1.
- The retailer also is redesigning its store manager bonus program to offer managers who hit all targets up to 200% of their base salary.
Zoom in: A store's profit will play a bigger role in calculating the bonus, Cedric Clark, executive vice president of store operations at Walmart's U.S. division, said in a blog post.
- The new pay range for managers is $90,000 to $170,000, up from $65,000 to $170,000.
Meanwhile, Walmart also is raising the average hourly wage for front-line hourly employees to $18 in February, up from $17.50.
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