Update from 2/1/2024: Walmart also announced that it will conduct a 3:1 split of outstanding shares of its common stock in part to ensure that “associates feel that purchasing shares is easily within reach.” More than 400,000 associates currently participate in Walmart’s Associate Stock Purchase Plan, which allows eligible associates to buy stock through payroll deductions and provides a 15% company match on the first $1,800 each year.
Walmart will raise its U.S. store managers’ base pay from an average of $117,000 per year to $128,000 and has redesigned its bonus program to include a store’s profits, not just its sales. Bonuses could now amount to 200% of a manager’s base salary.
Additionally, Walmart will offer stock grants of up to $20,000 annually for managers of Walmart Supercenters, with grants of $10,000 or $15,000 to those managing smaller-format Walmart stores. The retailer has had a stock purchase program that matched 15% of an employee’s purchase to a maximum of $1,800.
Walmart, the nation’s largest private employer, had raised pay for more than 7,000 opticians and pharmacists in June 2023, following January 2023 increases that boosted workers’ average hourly pay to $17.50.
Advertisement
“The number one driver of job satisfaction is an associate’s manager, and we believe that you — our front-line leaders — are the best in retail,” wrote Cedric Clark, EVP, Store Operations, Walmart U.S. in a blog post. “Not only are you responsible for exceeding customer expectations day in and day out; each of you is the CEO of a multimillion-dollar business. And you’re the driving force behind the development of our next generation of leaders.”
A strong labor market has many retailers raising wages and improving benefits for workers at multiple levels. Dollar General invested nearly $100 million to increase hours for its 170,000 store employees in March 2023, the same month that supermarket giant Kroger revealed plans to invest $770 million to raise wages for its frontline workers.
