Higher Bonuses and Stock Grants Increase Total Compensation to Over $400,000
Walmart has announced an increase in compensation for its superstore managers, including higher bonuses and added stock grants. This move will boost the total compensation package for the highest-paid managers to over $400,000 annually, as reported by the Wall Street Journal.
Lucrative Career Path for Non-College Graduates
Unlike other companies, Walmart does not require its superstore managers to hold college degrees. Instead, individuals can work their way up from entry-level positions within the retail giant. This makes the managerial role an attractive and lucrative career path for workers who may not have pursued higher education.
Walmart’s base salary for store managers is approximately $128,000. Additionally, the company has increased its annual stock grants to up to $20,000. Managers can also earn an annual bonus of up to 200% if they meet specific targets, as stated by the Wall Street Journal. Previously, the maximum bonus had been capped at 150%. It is worth noting that managers at smaller stores tend to earn less compared to those at Walmart’s supercenters.
Reasons Behind the Compensation Increase
According to Walmart U.S. CEO John Furner, the decision to increase compensation was made due to the growing complexity of the managerial role. With more e-commerce orders being fulfilled by stores, the job has become more demanding. Furner also highlighted that the stock grant aims to encourage managers to think and act like owners. By providing them with a stake in the company, Walmart aims to foster a sense of ownership and accountability.
Furner further mentioned that turnover among the retailer’s store managers has stabilized over the past year. The company is focused on retaining store managers in their respective locations for longer durations.
Enhancements for Front-Line Hourly Associates
In addition to the compensation increase for superstore managers, Walmart has announced investments in front-line hourly associates. This will result in average hourly pay rising from $17.50 to over $18. These increases are part of Walmart’s commitment to providing competitive wages and benefits to its employees.
Changes in Degree Requirements and Starting Pay
In September, Walmart made news by dropping college degree requirements for some of its white-collar roles at the corporate headquarters in Bentonville, Arkansas. The company aims to prioritize skills and experience over formal education qualifications when hiring employees for these positions.
At the same time, Walmart also made changes to starting pay for personal shoppers and stockers. However, it is important to note that these adjustments did not affect current employees.