Walmart is further enhancing its benefits for U.S. store managers as the nation’s largest retailer and private employer seeks to maintain leadership and attract new talent in a still competitive job market. .
Walmart, the Bentonville, Arkansas-based company with about 4,700 namesake stores in the U.S., announced Monday that store managers will receive up to $20,000 in Walmart stock grants each year, starting with the company’s new fiscal year starting Thursday. did.
Walmart stock has risen 15% over the past 52 weeks, and closed Friday at $164.27, up nearly 1%, or $1.43 per share.
The move comes after the discounter announced earlier this month that it would raise starting salaries for store managers while redesigning its bonus plan to better focus on their interests.
Changes to salary increases and bonuses will also take effect on Thursday.
Walmart said it has not made any changes to its store manager pay structure in more than a decade.
And while turnover among U.S. store managers and other employees will remain stable from 2022 onwards, pressure on employees is increasing. Since the pandemic, the acceleration of online services such as his BOPIS for “buy online, pick up in store” has created additional challenges for store leaders balancing inventory for both in-store customers and online shoppers. .
Walmart said annual stock grants are based on store format. The U.S. operator of the sprawling supercenter, which operates about 180,000 square feet, will receive $20,000 in equity grants.
Businesses that lead small Neighborhood Market stores and so-called “Division 1” stores that primarily sell general merchandise will receive $15,000 in equity grants.
Additionally, owners of Hometown stores, which are smaller versions of Division 1 stores, will receive $10,000 in equity grants each year, the company said.
According to Walmart, the vesting period for the stock grants is three years, with ownership of one-twelfth of the total amount vested quarterly. The grants will be awarded in April, the company’s traditional award period.
“It’s no exaggeration to say we’re asking them to act like owners and think like owners,” John Furner, CEO of Walmart’s U.S. division, said in a call with reporters Sunday. No,” he said. “And with this announcement, all of them are now owners, and many of them actually own shares.”
In fact, Furner said, Walmart has long had an employee stock program in which employees buy stock directly and the company matches the employee’s purchase amount by 15% (up to $1,800 per year). It pointed out. However, Walmart does not offer stock discounts.
New starting annual base salaries for U.S. store managers will range from $90,000 to $170,000. Previously, the range was from $65,000 to $170,000.
That means average base pay for store leaders will rise from $117,000 to $128,000, said Cedric Clark, executive vice president of store operations for Walmart’s U.S. division.
Walmart says about 75% of its store managers started out as hourly workers.
Walmart announced in January 2023 that U.S. workers would receive a raise next month, with starting wages ranging from $14 to $19 an hour.
Historically, starting wages have ranged from $12 to $18 an hour, depending on location.
