Walmart’s CEO, John Furner, announced that increasing compensation for top managers to over $620,000 annually has helped them feel more invested in the company. This strategy aims to address supervisor attrition and disengagement, aligning with similar successful initiatives by other executives who are backing their claims with financial commitments.
In large corporations like Walmart, many employees may struggle to feel a sense of connection. However, in 2024, U.S. CEO John Furner implemented a significant pay increase to ensure that top managers felt valued, raising their compensation to over $620,000 annually.
Furner explained at a retail and consumer conference that they made managers “feel like owners,” partially through shareholding, which positively influenced their approach to the company’s financial performance.
Facing challenges such as turnover and managerial shortages during the pandemic, the $689 billion retail giant increased pay for top-performing regional store managers in January, boosting their total compensation to between $420,000 and $620,000. The average base pay was raised from $130,000 to $160,000, with substantial stock grants and annual bonuses making up the rest of the salary.
Walmart spokesperson Anne Hatfield commented to Fortune that this increase is part of a longstanding effort, beginning in 2015, to invest in their employees through wage enhancements.
With over 4,000 store managers and approximately 1.6 million employees in the U.S., this significant payout represents a strategic investment in company culture.
This approach appears to be succeeding, as Walmart topped the Fortune 500 list in 2024 and featured in Fortune’s Best Companies to Work For list in 2024 and 2025. Managing such a substantial workforce is challenging, but Walmart has opted to incentivize satisfaction through financial rewards.
The importance of pay raises for employee satisfaction and retention is highlighted by a BambooHR report from 2024, which found that 73% of workers would consider leaving their jobs for higher pay, although 40% hadn’t received a pay increase in the past year. The report underscores the impact of salary compression and the need for competitive compensation to attract talent, as explained by BambooHR’s director of HR business partners, Kelsey Tarp.
In response, some companies are beginning to recognize the significance of pay increases in enhancing company culture. For instance, Cameo offered $10,000 bonuses to encourage employees to return to its Chicago headquarters, and Rolls-Royce distributed $39 million in shares to its employees to reward their contributions during a business turnaround.
Similarly, Volkswagen responded to strikes by offering its Tennessee plant workers a 14% pay increase over four years, and Exxon provided significant pay raises following a period of salary freezes and layoffs, recognizing employees’ efforts amidst challenging times.
Exxon spokeswoman Amy Von Walter emphasized the company’s appreciation for its employees’ dedication and achievements during a period of uncertainty and change. These strategic pay adjustments underline the critical role of compensation in fostering employee engagement and satisfaction.
