Report: Wal-Mart giving employees $2B in annual incentive program

New York City In its largest annual employee award ever, Wal-Mart Stores is awarding approximately $2 billion to its U.S. hourly employees through financial incentives, including handing out $933.6 million in bonuses on Thursday. The move comes as the chain has gained market share amid the recession, and as other chains have cut back or eliminated employee financial incentive programs.

In a memo to Wal-Mart employees obtained by Reuters, Wal-Mart CEO Mike Duke said the retailer is awarding roughly $2 billion to U.S. hourly employees, which includes $933.6 million in bonuses, $788.8 million in profit sharing and 401(k) contributions, millions of dollars in merchandise discounts, and contributions to its employee stock-purchase plan.

"While economic challenges forced others to step back, we moved forward," Duke stated in the memo.

Last year, Wal-Mart paid out around $1.8 billion in awards, including more than $636.4 million in bonuses.

The 2009 awards are based on how well the 3,657 U.S. Wal-Marts and 602 Sam's Clubs performed in 2008. The bonus reportedly averages $933.60 for each qualified employee, ranging from cashiers to shelf stockers.