Walmart has been no stranger to total rewards moves for its employees in the past year, making changes to worker pay and adding and expanding benefits.
Now, the nation’s largest private employer announced its latest change: It will conduct a split of its outstanding shares of common stock at a ratio of 3:1 to make shares more affordable for employees. Walmart said the stock split is part of the company’s ongoing review of “optimal trading and spread levels and desire for associates to feel that purchasing shares is easily within reach.”
More than 400,000 employees currently participate in Walmart’s Associate Stock Purchase Plan, which allows eligible associates to purchase stock through payroll deductions and provides a 15 percent company match on the first $1,800 each year, Walmart said.
The stock split plans are in part intended to keep stock purchase prices accessible for store-level employees, the retailer said. The split can benefit Walmart in better retention and attraction of employees, as well as get the company more investors.
The stock splits are part of the company’s focus on a robust total rewards package, Walmart said in a company blog post, “with continued investments in compensation, attractive healthcare, financial and educational benefits.”
It’s Walmart’s first stock split since 1999.
SHRM Online rounded up additional news on the stock split, as well as other news about Walmart’s total rewards strategy.
Details of the Walmart Stock Split
Walmart’s stock split—which essentially means it’s creating more shares out of existing shares and in the process reducing its share price to make the shares more affordable to purchase—is one of the most high-profile company stock splits of recent years. Amazon and Alphabet split their stocks in 2022, Fast Company reported.
Walmart shares will split 3-for-1 after the market closes on Friday, Feb. 23, for those who are shareholders of record at the close of business on Thursday, Feb. 22.
Walmart Giving Store Managers Big Raise
The stock split announcement came shortly after the retailer said it is raising the average salary for store managers by roughly 9.4 percent—to $128,000 a year, up from $117,000. The raise kicked in on Feb. 1. Store managers will also be eligible for bonuses of up to 200 percent of their base salary, based on individual store sales and profit.
“Making Walmart the best place to shop means we need to make it the best place to work. To accomplish that, we are on a journey of investing in our associates—from offering competitive front-line pay to benefits that support associates’ health and well-being in all aspects of life,” Cedric Clark, executive vice president, store operations, Walmart U.S., said in a company blog post.
Walmart Has Expanded Multiple Benefits Over Past Year
Walmart has made a string of benefits changes for its employees over the past year.
Late last year, Walmart expanded its benefits to provide employees with access to doula services. The benefit, which kicked off Nov. 1 for most Walmart workers nationwide, covers up to $1,000 for doula services during pregnancy and is part of a suite of benefits offered through the company’s "Life with Baby" program, which is available to associates on most employee medical plans.
In May, Walmart beefed up its mental health benefits, doubling the number of therapy and mental health coaching sessions it provides to all workers and their dependents. And in July, it added a new financial wellness benefit, offering free financial literacy education for all employees through online provider Khan Academy.
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