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Walmart says it increased compensation packages for many of its top-performing store managers this year, offering packages ranging from $420,000 to $620,000 in a bid to improve engagement and retention.
The move followed a period when the retailer faced turnover and shortages across management roles, prompting leadership to find ways to improve stability and engagement among frontline leaders.
“What we did last year was make managers feel like owners,” Walmart US CEO John Furner said at a retail and consumer conference in April. “This includes shareholding, which has positively impacted their approach to the company’s profits and losses.”
The company lifted the average base salary for managers from $130,000 to $160,000. The remainder of the significantly higher earnings came through stock grants and annual bonuses tied to performance. Walmart spokesperson Anne Hatfield said earlier this year, “This is the latest wage investment in our people. This has been a years-long journey with increases in hourly pay that started in 2015.”
The policy applied to more than 4,000 store managers across the US, part of a workforce of around 1.5 million employees. Leadership described the decision as a cultural investment designed to strengthen manager influence and accountability inside stores.
Manager pay tied to retention goals
Walmart’s leadership said that morale and retention have improved following the changes. The retailer took the top position on the Fortune 500 and was included on the Fortune Best Companies to Work For list in both 2024 and 2025. It also reported improving hourly worker retention by 10% over the past decade.
Many workers remain motivated by higher compensation during a period of continued cost-of-living pressure. Some 73% of employees would consider leaving their employer for a higher paycheck, according to a 2024 report from BambooHR, while 40% have not received a raise in the last year.
“The cost of getting compensation wrong is easily realized in multiples later,” said Kelsey Tarp, Director of HR Business Partners at BambooHR. She noted that companies often face wage compression and less competitive pay ranges when they delay adjustments.
Pay raises influence culture outcomes
Other employers have adopted similar approaches. Cameo offered $10,000 bonuses to employees returning to its Chicago office four days per week; Rolls-Royce granted nearly $39million in shares to staff after a business turnaround, distributing 150 shares per employee and Volkswagen provided its Tennessee plant workers a 14% pay increase over four years during labor disputes.
Exxon Mobil delivered an average 9% pay increase after earlier freezes, with some top performers receiving raises between 15% and 25%. “Our company performance reflects the hard work, commitment, and perseverance of our employees,” an Exxon spokesperson said.
