Walmart announced it will increase store manager pay and tie annual bonuses to store profits, according to a memo to employees from Cedric Clark, vice president of store operations.
The first of the two-way wage changes involves store manager salaries. The average salary for a Walmart store manager will increase from $117,000 to $128,000 annually. But a Walmart store manager’s total annual earnings also depend on bonuses. Previously, this bonus was tied to store sales. That will still be the case, but now the store’s profits will play a larger role in determining the manager’s annual bonus.
If a store manager achieves both the store’s sales and profit goals, the manager’s annual bonus can be as much as 200% of his base salary. For a store manager making $128,000 a year, this means their bonuses could be as high as $256,000.
As CNN reports, the new raises will begin on February 1. Walmart has changed store managers’ pay for the first time in more than a decade. Before the changes, a store manager’s salary ranged from $65,000 to $170,000. It will now range from $90,000 to $170,000.
“We view an investment in you as an investment in our culture, our core values, and the daily experience of every associate in every store. “Investing in you is investing in our future,” Clark said in the memo to employees.