- Walmart store managers can now earn up to $400,000 per year through a combination of stock grants and bonuses.
- The pay increase is part of Walmart’s efforts to incentivize managers to act like owners.
- The increase widens the pay gap between top employees and rank-and-file workers, who saw their starting wages increase last year.
Additional Coverage:
Walmart has announced that its store managers can now earn up to $400,000 per year. The company will provide $20,000 in stock grants annually to Walmart Supercenter managers. Walmart U.S. CEO John Furner stated that the company wants its managers to act like owners, and now they will literally become owners. Managers will start receiving the stock grants in April. This comes as Walmart recently increased the average base pay for managers to $128,000, a 9% increase from the previous year.
In addition to the stock grants, managers have the opportunity to earn up to 200% of their base pay as yearly bonuses, which can amount to an additional $256,000 per year. With the higher base pay and stock grants, managers can potentially earn up to $404,000 annually. Furner acknowledged that managing a store is more complex today than in the past.
Walmart emphasized that this pay increase provides a pathway to a lucrative career, with the majority of people in management roles starting as hourly workers. A college degree is not required to become a manager at Walmart, and it typically takes about 5 years to move from an entry-level role to a management position.
While this pay boost is positive news for Walmart’s managers, it widens the gap between top employees and rank-and-file workers. Walmart increased its starting wages for U.S. employees last year to a range of $14 to $19 per hour, depending on location.
Walmart has also announced that managers of other types of stores, such as Neighborhood Markets and smaller Walmart stores, will receive smaller stock grants. Neighborhood Market and smaller store managers will receive $15,000 in stock grants annually, while Hometown store managers will receive $10,000 per year.
Walmart’s stock has seen a 16% increase in the past year.