Walmart has unveiled a significant enhancement to its compensation structure for store managers, announcing on Monday that managers at its Supercenters can now potentially earn up to $400,000 annually.
The retail giant is set to provide $20,000 in stock grants each year to Supercenter managers as part of this comprehensive financial package.
Walmart U.S. CEO John Furner emphasized the significance of this move, stating, “We ask our managers to own their roles and act like owners — and now, they’ll literally be owners.” According to Furner, Supercenter managers will begin receiving the $20,000 stock grants annually from April onwards.
This new stock provision accompanies a recent increase in the average base pay for managers, now standing at $128,000, representing a 9% rise from the previous $117,000 per year in 2023.
In addition to the stock grants and base pay, Walmart managers are eligible to earn up to 200% of their base pay as yearly bonuses, contingent on their stores’ sales and profits.
This equates to an additional potential income of $256,000 annually. With the heightened base pay and stock grants, managers have the opportunity to achieve an annual income of up to $404,000.
Acknowledging the evolving nature of the managerial role within Walmart, Furner remarked, “It’s a far more complex job today than when I managed a store.”
This substantial increase in compensation positions the role of a Walmart manager as a lucrative career path accessible to a diverse range of individuals.
Walmart underscored that a college degree is not a prerequisite for managerial positions, emphasizing that 3 in 4 people in management roles at its stores, clubs, or supply chain divisions initially started as hourly workers. The company noted that, on average, it takes around five years to progress from an entry-level position to a managerial role.
While this development is undoubtedly positive for Walmart’s managerial staff, it also accentuates the existing wage gap between top-tier employees and the general workforce.
Walmart had previously raised the starting wages for its U.S. employees, ranging from $14 to $19 per hour depending on location. The disparity in compensation between management and frontline workers is a notable aspect of the retail giant’s remuneration structure.
Walmart clarified that managers of other store formats would receive varying stock grants. Neighborhood Markets and smaller Walmart stores are set to receive $15,000 annually in stock grants, while Hometown store managers will be granted $10,000 per year.
The positive financial news for Walmart managers coincides with a 16% increase in Walmart shares over the past 12 months, contributing to the company’s robust financial performance.