Walmart’s performance-based compensation approach ensures that managers’ interests are closely tied to the company’s achievements
Walmart’s move to offer its leading U.S. store managers annual compensation of up to $620,000—including bonuses and stock awards—has become a key part of its plan to boost employee engagement and retention, CEO John Furner shared during an April retail and consumer conference, according to
Furner highlighted that the pay changes, rolled out in January 2024, were intended to tie managers’ financial rewards to the company’s success. “Last year, we made our managers feel like true stakeholders,” he explained, adding that owning shares has changed how they manage profits and losses. This step is part of a wider trend among companies to use equity-based incentives to keep valuable employees, especially in industries with tight labor markets. Walmart spokesperson Anne Hatfield told Fortune that the policy is the result of a “multi-year effort” to raise wages, which began with hourly pay increases in 2015.
This high-earning group—about 4,000 U.S. store managers—has made a notable impact.
This strategy reflects broader trends in the workforce. According to a 2024 BambooHR survey, 73% of workers would consider switching jobs for better pay, and 40% had not received a raise in the previous year. Walmart’s focus on direct financial rewards stands in contrast to traditional benefits like “unlimited PTO,” which experts say are less effective than straightforward pay increases. Kelsey Tarp, HR business partner director at BambooHR, pointed out that poor compensation decisions can quickly lead to expensive talent shortages: “The price of getting pay wrong can multiply down the line.”
Walmart’s approach is similar to bold compensation moves by other major companies. Rolls-Royce, for example, distributed $39 million in shares to its workforce during its recovery, while Volkswagen granted a 14% pay bump to Tennessee plant employees amid labor negotiations. ExxonMobil, after a period of wage freezes and layoffs, gave average raises of 9% in 2025, with top performers receiving increases between 15% and 25%.
For Walmart, this strategy seems to be delivering results. With a U.S. workforce of 1.5 million, the company’s emphasis on substantial cash rewards has helped it compete for talent. As Furner remarked, “This is our latest investment in employee wages,” a principle that continues to influence Walmart’s workplace culture.
