Paying Walmart Managers Millions Is Just Good Business
A handful of retailers are paying store leaders six-figure salaries and providing stock incentives. The investment is paying off.
Managing up the income ladder.
Photographer: Bloomberg/BloombergAfter being on the frontline of the pandemic, then grappling with an edgy public and a spike in shoplifting, its been a tough few years to work retail. But for Walmart Inc. managers, at least, things are looking up.
In January, the company announced that it would significantly boost store managers’ pay. They will now receive annual stock grants of as much as $20,000. Average base salaries were raised to $128,000 a year, from $117,000. The retailer has also changed the way it calculates bonuses: It will continue to evaluate sales, but the profit generated by a manager’s store will play a bigger role, motivating the leaders to improve performance. If a manager hits all targets, they could earn a bonus of up to 200% of base salary. All told, a successful manager of a high-performing store could now pass the $500,000 mark, according to Bloomberg News.