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Walmart, the nation’s largest private employer, is looking for ways to retain store managers and increasing their pay and benefits.
Walmart announced Monday that U.S. store managers will receive up to $20,000 in company stock grants each year. The vesting period for the shares is three years, with a fixed percentage vesting every quarter.
The announcement comes weeks after Walmart announced it would increase the average salary for store managers from $117,000 to $128,000. The major retailer also said bonuses for store managers could reach up to 200% of their base salary, as store profitability becomes a bigger factor in the calculations.
Store managers are critical to increasing in-store sales and profitability and keeping morale high in a dynamic business. Managers are also seen as an important conduit for company leadership.
Store managers at Walmart Supercenters oversee hundreds of employees working in a variety of departments, including food, apparel, pharmacy, and auto centers. These stores attract large numbers of shoppers and generate millions of dollars in sales each year. At the beginning of the coronavirus pandemic, store managers were tasked with managing e-commerce functions such as online order pick-up in-store, as well as managing out-of-stock and excess items as the company adapted to changing consumer behavior. He was given even greater responsibility. stock.
“It is no exaggeration to say that we are asking them to act like owners and think like owners.” John Furner, CEO of Walmart US and previously a company store manager, said in a briefing with reporters.
The size of the manager stock grant is based on Walmart’s store format. Supercenter store managers have the most qualifications and are paid up to $20,000 a year. Her other two-tier stores, which are often smaller and have fewer departments, give managers $10,000 a year or his $15,000 stock grants.
Throughout the pandemic, retailers have looked for ways to retain employees as people come and go in search of higher wages and more opportunities. Until recently, Walmart has focused on raising wages for store workers. Farner said Walmart’s in-store sales will remain stable from 2022 onwards, and the company is happy with its staffing levels.
“The store manager ranks have become more stable in recent years,” he said.
“We’re going to keep store managers in place a little longer, and having them for a few years rather than a year or less is good for the whole team,” he added. “That’s a good sign.”
Furner pointed out that Walmart already has an associate stock purchase program in place, which offers 15% of stock purchases worth up to $1,800. But Monday’s announcement goes beyond that.
He also said the new program will allow store managers to share in the rewards of business growth and stock price appreciation. On Friday, Walmart stock closed at $164.27. Over the past five years, that percentage has increased by nearly 43%.
“If we do well and the stock price goes up, our management team, especially our store managers, will be able to participate,” Furner said.
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