Walmart Stock Grants Shake Up Pay, Making $400K Salaries Possibility for Store Managers
Walmart is introducing a new initiative whereby high-performing managers could potentially earn over $400,000 a year. Starting in April, eligible managers could receive stock grants valued at $20,000.
In a post last week, the company said it is set to raise the average salary for store managers from $117,000 to $128,000 a year. Store managers will also now be eligible for yearly bonuses of up to 200% of their salary.
Taking into consideration the updated average salary, the highest attainable annual bonus, and the complete $20,000 stock grant, a U.S.-based Walmart Supercenter manager could, in theory, secure an annual income exceeding $400,000.
In a video posted Monday on LinkedIn, the retail giant’s president and CEO Brian Furner said the amount of the stock grant rewards would be based on store formats.
“A Walmart store manager is running a multimillion-dollar business and managing hundreds of people, and it’s a far more complex job today than when I managed a store,” Furner said. “And we ask our managers to own their roles and act like owners. And now, they'll literally be owners.”
Retail’s Pay Problem
Investment in store managers could not have come at a better time. A recent analysis but USA Today revealed that the retail industry ranks No. 8 as the industry where employees are most frustrated about pay overall. Transportation and Logistics ranked No. 9 and Packaged Goods No. 15.
Retail store managers are notoriously difficult to retain, facing high stress levels from demanding schedules and pressure to meet targets. In fact, a 2022 McKinsey study showed that 63% of frontline retail managers were thinking about quitting in the near future.
Last year, Walmart revealed approximately 75% of its U.S. salaried managers had started out at the company as hourly associates, pointing to significant investment in career mobility and opportunities for advancement – another crucial component of attracting, retaining, and engaging staff.
“This investment is about belief. We believe in you. We believe you’re the keepers of our culture today while you’re also helping to identify and grow the future leaders of our company. You’re the reason our associates can build something special working at Walmart – just like many of us have. You make the difference, and we could not be more excited to continue this journey with you,” said Cedric Clark, EVP of store operations at Walmart U.S.