Walmart is increasing compensation for its superstore managers by boosting bonuses and adding stock grants that will boost the total compensation package for the highest-paid managers to over $400,000 annually, according to a report by the Wall Street Journal.
Superstore managers at Walmart aren’t required to hold college degrees and may work their way up the corporate ladder from entry-level jobs at the retail giant — making the managerial role a lucrative career path for workers who may not have gone to college.
Walmart’s base salary for store managers is roughly $128,000 and the company just increased its annual stock grants to up to $20,000 a year, while managers can also earn an up-to-200% bonus annually if they meet certain targets, according to the Wall Street Journal.
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The maximum bonus had previously been set at 150%, and managers at smaller stores tend to earn less than those at Walmart’s supercenters.
The Journal’s report said that Walmart U.S. CEO John Furner explained the compensation was increased because the job has become more difficult with a greater number of e-commerce orders being fulfilled by stores and that the stock grant “makes it easier for them to think and act like owners because they are.”
He added that Walmart has stabilized turnover among the retailer’s store managers over the prior year and that the company is “keeping store managers in their location a bit longer.”
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The changes come after Walmart made a series of other adjustments to its compensation structure and workforce requirements last year.
The company announced that “investments in front-line hourly associates and upcoming annual increases” will result in average hourly pay rising from $17.50 to more than $18. That came amid a push to increase employee retention.
Walmart announced in September that it would drop the college degree requirements for some of the white-collar roles at its corporate headquarters in Bentonville, Arkansas.
The company also announced that it would lower the starting pay for personal shoppers and stockers — though the change didn’t affect current employees.
FOX Business’s Chris Pandolfo contributed to this report.
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