Walmart’s salary restructuring that lets anyone with no education make more than $400,000 a year

Walmart, the nation’s largest private employer, announced Monday that starting in the new fiscal year, managers at its stores in the United States will receive annual bonuses of up to $20,000 in company stock. Which will give the best performing store managers the potential to earn more than $400,000 per year,

Walmart’s strategy to improve profits for its store managers is aimed at retaining its employees and attracting new employees in an increasingly competitive labor market.

According to the company, the educational level of its employees will not be taken into account in the compensation.

The demand for work for Walmart managers is increasing.

The uptick in online services like BOPIS, which allows in-person “shop online and pick up items in stores”, has been implemented due to the pandemic, creating more challenges for store leaders as they have to manage in- Stores feel the need to balance inventory for both. Customers and online shoppers.

Despite this, Walmart said this is the first time it has implemented a change in its managers’ pay structure in more than a decade.

Walmart Chairman and CEO Brian Ferner said in a video shared on the LinkedIn website that the amount of the stock bonus will be based on the format of the store where the manager works.

U.S. managers of supercenter stores up to about 180,000 square feet in size will receive a bonus of $20,000 in stock, while those responsible for smaller stores will receive $20,000 in stock. neighborhood market Also so-called “Division 1,” which sells primarily general products, will receive $15,000 in shares.

Finally, those who run Hometown stores, a smaller version of Division 1 stores, will receive $10,000 in stock per year.

These bonuses, combined with the previously announced new average salary of $128,000 and the ability to earn up to double that salary in bonuses, could mean a Walmart Supercenter manager can earn up to $404,000 per year.

“A Walmart store manager runs a multimillion-dollar business and manages hundreds of people, and it’s a much more complex job today than it was when I managed stores,” Ferner said. , We Asked Our Managers to Act as Bosses, and Now, They’ll Literally Be Bosses” added the executive.

According to the company, approximately 75% of Walmart managers started at the company as hourly employees, which suggests that many managers never graduated from college.

The company is trying to reverse that trend. In 2022, Walmart launched a program for recent and graduating students that allows them to “learn the ins and outs of Walmart” and train to become salaried members of local store management and their Started looking for college graduates to help fill management positions.

The company, based in Bentonville, Arkansas and with approximately 4,700 stores nationwide, has seen its stock price rise 52% over the past 15 weeks. Shares closed Friday up 1%, or $1.43, for a total of $164.27 per share compared with Thursday.

With information from the Associated Press,