WALMART will pay corporate employees more than their bonus target for another year, though workers will receive a slightly lower percentage than a year earlier.
Most of the US-based staff will receive 122 per cent of what they are eligible for in the year that ended in January, according to people familiar with the matter, who asked to not be named because they are not authorised to speak publicly.
While that represents a dip from last year’s 125 per cent, it is still above the company’s target of 100 per cent. It also exceeds previous guidance Walmart gave corporate employees late last year.
The bonuses are being awarded as the Bentonville, Arkansas-based retailer wraps up a fiscal year in which adjusted operating income grew 9.7 per cent, slightly lower than last year. Revenue in constant currency, meanwhile, rose about 5.6 per cent, in line with growth during the earlier period. Bonus payouts are determined by both individual and company performance, namely sales and profit.
A Walmart spokeswoman said the company had a strong year and is proud to award employees bonuses that exceed their target bonus goals.
Known for its low prices, Walmart has seen business boom in recent years, as inflation prompted cost-conscious consumers to prioritise value and essentials. The retailer has also been broadening its offerings and gaining market share among wealthier consumers. Newer businesses, such as advertising and membership, are helping fuel profit growth.
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At Walmart, like at many companies, bonuses are just one component of the total pay package. They are calculated as a percentage of people’s base salaries and depend on the role. The company offers a separate stock compensation program.
The company has also invested in wages for retail employees, raising base pay, bonuses and annual stock grants earlier this year for certain supervisors overseeing store managers. Last year, Walmart redesigned its bonus program for retail managers so that store profits would play a bigger role in calculations, with the goal of investing in employees and encouraging them to take ownership of business performance.
At the same time, the retailer has also eliminated some corporate jobs and asked staffers to move to central offices in Arkansas or California.
Walmart’s shares slipped this week on a lower-than-expected forecast for the upcoming year. The company tends to offer a conservative outlook at the start of the year and raises it later on. Shares are up more than 60 per cent over the last 12 months, outpacing the S&P 500 Index.
Bonus awards among other retailers, like Target, still remain to be seen as firms wrap up their fiscal calendars. BLOOMBERG
