(Bloomberg) -- Walmart Inc.’s corporate employee bonuses are set to surpass targets again this year as the company’s stock soars and sales outperform its retail rivals.
The Bentonville, Arkansas-based retailer told US-based corporate employees they can expect to earn as much as 120% of their eligible bonuses, people familiar with the matter said. The final amount won’t be determined until the fiscal year finishes at the end of January, they added.
Walmart’s corporate employees earn a base salary with a bonus on top that varies by role. Walmart calculates the annual bonus payout based on company and individual performance, with a target of receiving 100%. Last year, corporate employees received 125%, the highest possible amount, according to a person familiar with the matter.
The company offers a separate stock compensation program as part of its pay package, in addition to salary and bonus.
Walmart, which is one of the biggest employers in the country, has about 2.1 million employees around the world. About 1.6 million of these are in the US, most of whom are retail workers.
Walmart’s retail employees have their own compensation structure, with store managers’ bonuses being tied to their location’s performance.
Earlier this year, Walmart redesigned its bonus program for managers so that store profits would play a bigger role in calculations. At the time, the company said it wanted to invest in employees and encourage them to take ownership of business performance.
Under the new guidance, bonuses can be up to 200% of managers’ base pay. The company also raised base salaries for store managers, who are now eligible to receive an annual stock grant of up to $20,000. This means total salary can surpass $500,000 a year for the most successful managers.
Walmart has beat sales expectations in recent years, with shares up more than 70% in 2024.
The retailer raised its full-year guidance this week as people prioritize essentials like groceries, which make up roughly 60% of its business. It’s gaining share among all income cohorts, especially wealthier shoppers. Newer businesses, including advertising and a third-party marketplace, have also been fueling profit growth. Higher profits are helping Walmart cut prices and invest in other parts of its business.
Its strong performance has been a sharp contrast to rival Target Corp. The Minneapolis-based company cut its full-year forecast this week, citing weak discretionary spending. Costco Wholesale Corp. will report quarterly results next month.
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