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Walmart offers stock options and better pay to store managers
https://www.whatjobs.com/news/usa/us-employment-news/walmart-offers-stock-options-and-better-pay-to-store-managers
By Nithya Bose in Business News, posted January 30, 2024
Walmart is increasing pay and benefits for its store managers to boost retention and morale.
It said US store managers would now be eligible for yearly stock grants potentially worth up to $20,000, which will vest over three years.
This follows Walmart's recent move to raise average store manager salaries from $117,000 to $128,000.
The potential bonuses reach up to 200 percent of base salaries based on store profitability.
Store managers drive sales and ensure efficient operations across various departments, including food, apparel, pharmacies, and auto centers.
During the pandemic, their responsibilities expanded to manage online orders and fluctuating inventory levels.
John Furner, CEO of Walmart US, said: “It’s fair to say that we’re asking them to act like owners and to think like owners.”
The amount of stock granted will depend on the store type, with Supercenter managers eligible for the highest amount.
Furner said the move is part of Walmart's broader strategy to stabilize its workforce, which has seen improved employee turnover since 2022.
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He said: “The store manager ranks have been more stable the last couple of years.”
He added: “We’re keeping store managers in their location a bit longer, and it’s good for an entire team to have a manager for a few years versus a year or something less than that. So that’s a good sign.”
Furner noted that Walmart already offers a stock purchase plan that matches 15 percent of an employee's investment up to $1,800.
He said the scheme allows store managers to share in the rewards of a growing business and rising stock price.
Over the past five years, it has increased nearly 43 percent.
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