Walmart (NYSE:WMT) stock has been on the rise lately after the company announced that it will raise the annual average salary and bonus for its U.S. store managers beginning Feb. 1. Indeed, Walmart pay raises have been the chatter of Wall Street as the retailer follows through on its September promise of a wage structure change.
So, what do you need to know about Walmart and WMT stock lately?
Well, it appears Walmart is taking a turn for the generous with its new compensation system. Indeed, the firm announced that it will increase the average salary for its store managers to $128,000 per year, from $117,000. Additionally, all managers will be eligible to receive an annual bonus as high as 200% of their base salary, depending on store performance.
The company also announced an increase in average “front-line” associate pay to $18 per hour from $17.50, a change first hinted at in January 2023. As of fiscal 2023, Walmart employed about 1.6 million U.S. associates.
This news comes as a follow-up to Walmart’s September announcement that it would make starting pay uniform across all job roles and departments, as part of an effort to improve employee retention.
In November, Walmart also raised its forecast for sales and profit for fiscal 2024, a function of stronger grocery sales amid high interest rates.
WMT Stock Enjoys Strong Start to Year
Walmart’s generous new compensation changes seemingly reflect the state of the labor market currently. Indeed, with U.S. unemployment of just 3.7% per the December Employment Situation summary, wages have been on the rise lately, even outpacing inflation for most of last year.
This has pushed many labor unions to protest, leading to staggering number of labor strikes in 2023. Everyone from Detroit car builders to Hollywood screenwriters petitioned against stagnant wages and unfair work conditions last year, resulting in many positive changes for workers.
It appears Walmart is trying to get ahead of the curve in this regard by proactively raising pay for employees across the board. WMT stock is up nearly 2% so far this year.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
