As part of an effort to retain and reward talented leaders in a competitive labor market, Walmart is giving its U.S. store managers up to $20,000 a year in company stock grants.

Starting in April, store managers will be eligible for an annual grant of stock, with the amount based on the size and format of the store where they work, according to the Bentonville, Ark.-based retail giant’s president and CEO John Furner.

In a Jan. 29 LinkedIn post announcing the enhanced compensation plan, Furner said, “A Walmart store manager is running a multimillion-dollar business and managing hundreds of people. And it’s a far more complex job today than when I managed a store. We ask our managers to own their roles and act like owners. And now, they’ll literally be owners.”

Based on the breakdown provided by Furner, managers of the sprawling Supercenter stores will receive $20,000 in stock grants. Those leading smaller neighborhood market stores, which mainly sell general merchandise, will get $15,000 in stock grants, according to Walmart. And those who manage hometown stores – a smaller version of neighborhood market locations – will get $10,000 in stock grants.

Combined with a recently announced bump in store manager average base pay to $128,000 a year, and the ability to earn up to 200% of that salary in bonuses, a top manager could now earn as much as $404,000 a year.

Growing careers

After reporting turnover across the entire business has stabilized “quite a bit” since 2022, Furner said he believes the pay program changes should help with manager retention. Stock grants will be made annually but vest on a quarterly basis over a three-year period.

He also noted that 75% of Walmart’s store, club and supply chain management started as hourly associates and that, on average, it took only five years to get to a higher position, with no college degree required.

Furner said, “My Walmart career started as a sporting goods hourly associate in Washington state. I was able to grow my career because people invested in me. I know firsthand that the possibilities are endless when working at Walmart. And the possibilities are endless for you and for everyone you lead every day. This investment is about belief. We believe in you. We believe you’re the keepers of our culture today while you’re also helping to identify and grow the future leaders of our company.”

Of Walmart’s 4,600 stores nationwide, more than 3,500 of those locations are Supercenters.

Within New Jersey, the retailer’s 70-store footprint includes 35 Supercenters. A media representative for the company did not immediately know how many store managers are employed across the state.