Walmart US CEO John Furner told a meeting of store managers yesterday that starting in April, they will receive annual stock grants of up to $20,000.
Axios reports that supercenter store managers will get $20,000 worth of Walmart stock, while Neighborhood Market and Division 1 stores (bigger than 70,000 square feet) will get $15,000, and Hometown store managers (smaller than 70,000 square feet) will get $10,000 stock grants.
The announcement comes as Walmart already has increased pay for store managers, hiking the current average manager salary from $117,000 to $128,000 starting Feb. 1.
"A Walmart store manager is running a multimillion-dollar business and managing hundreds of people. It's a far more complex job today than when I managed a store," Furner said in a video posted on LinkedIn.
Axios writes that Walmart confirmed "that all levels of management above the store manager level on the store side already receive annual stock grants.
On the supply chain side, Walmart distribution and fulfillment center general managers and management levels above them receive annual stock grants."
- KC's View:
It makes sense. There's nothing more effective at creating a sense of ownership among employees than actually giving them ownership.
Whether it is stock grants or profit sharing, these kinds of moves are good for morale, good for stability, and also create some level of ambition among people in the company who will want to position themselves for such grants.
I wonder if, after some period of time, Walmart will extend the policy to department managers in its store system - the numbers would be smaller, but the impact will be just as significant.