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Walmart revealed on Wednesday that it would provide bonuses to its hourly store workers across its U.S. locations, including those at pharmacy and Vision Center stores. This move is expected to benefit approximately 700,000 front-line staff members.
Bonus Details:
- Eligibility: Both part-time and full-time associates are eligible.
- Bonus Amount: Associates can receive up to $1,000 annually.
- Origin: The idea for this bonus program stemmed from feedback gathered from store workers.
- Performance-Based: Bonuses are calculated based on stores achieving specific performance targets.
- Duration: Associates must have been with the company for at least a year to qualify.
Executive Compensation and Shareholder Proposals:
- Manager Bonus Redesign: In January, Walmart announced a bonus redesign for U.S. store managers, enabling them to earn up to 200% of their salary bonuses.
- Investor Concerns: Shareholders voted on seven proposals during Walmart’s annual general meeting, including one urging the company to establish a compensation policy that ensures workers receive sufficient earnings to meet basic family needs.
- CEO Pay Disparity: The proposal highlighted the significant pay gap between Walmart’s CEO, Doug McMillon, and the median employee. McMillon’s compensation is reportedly 933 times higher than the median worker’s.
Response and Outcome:
- Walmart’s Position: The company defended its bonus plan to reward performance and long-term employees. It also emphasized that the bonus program complements the minimum hourly wage, which starts at $14.
- Shareholder Approval: The proposal received approximately 4.4% of the votes. However, the significant control of Walmart’s stock by the Walton family makes it challenging for such proposals to garner majority support.
Labor Market Initiatives:
- Decrease in Turnover: Walmart noted a decline in store worker turnover, indicating positive outcomes from its initiatives.
- Associate to Technician Program: Walmart launched a certification program to help workers transition to higher-paying technician roles in areas such as refrigeration, facilities maintenance, and automation.
