Walmart CEO says that paying Star Managers more than $620,000 a year will allow them to “feel like the owner”

• Walmart CEO John Ferner said he will raise top managers’ compensation to more than $620,000 a year I “feeled like the owners.” Pay hikes wanted to fight over the exhaustion and departure of supervisors. This is a strategy that will reward other like-minded bosses who put their money where their mouths are.

For many employees, it can be difficult to feel a connection, especially with large companies. Walmart. However, in 2024, US CEO John Ferner pulled out a big gun to make the star manager feel love, with the star manager paying more than $620,000 a year.

“What we did last year was that the manager felt like the owner,” Farner said. I recently said At retail and consumer conferences. “This includes holdings of stock, which has a positive impact on the company’s approach to profits and losses.”

With bold movement after morale and retention Fighting against turnovers and Lack of managers During the pandemic, the $68.9 billion retail giant gave top-local regional store managers serious paydays in January, increasing their total pay from $420,000 to $620,000.

Their average base salary was hiked from $130,000 to $160,000, with the remaining approximately $500,000 salaries consisting of large stock grants and annual bonuses.

“This is the latest wage investment in our people,” Walmart spokesman Anne Hatfield said. I said luck. “This has been a long-standing journey with the increase in hourly wages that began in 2015.”

With over 4,000 store managers (and around 1.6 million workers) across the United States, payments are not generous, they are a culture-calculated bet.

And the bet is working. In 2024, Walmart won the top spot Fortune 500– And it landed For Fortune’s best companies I’ll list it again in 2025, not just last year. With a workforce of 1.6 million people, it’s not easy to keep everyone happy, but Walmart went straight to the source: Cold, Hard Cash

A salary increase is essential for employee satisfaction and retention

The boss may avoid the promise of “unlimited PTOs” and fashionable office amenities, but what most workers really want is more money.

Approximately 73% of workers consider leaving their employers to a higher salary. 2024 Report From Bamboohr. Money speaks, 40% of employees didn’t receive wage bumps last year.

Payroll deflation and slowing down Salary increases are driving staff against the wall. As grocery prices continue to rise and the costs of living continue, many will be shaken up with more money than ever before.

“The cost of making a mistake in compensation can be easily achieved with multiples.” I said Kelsey Tarp, director of HR Business Partners at Bamboohr.

“When employers need to go to the market for talent, they may feel that their pay range is insufficient to attract people who need it, and there is a pay reduction to deal with.

Employers paying to boost corporate culture

Some employers have already caught up. cameo The workers are back At its Chicago headquarters, the company offered a $10,000 bonus to enter the office four days a week, rather than tasking the face.

rear Rolls-Royce In recent years, it has elicited an extraordinary business shift, handing out nearly $39 million in shares to its employees. We wanted to advance success by rewarding those who made it happen. Each staff member has stakes of 150 companies each, worth just over $900 in total.

“We recognize your contribution to our future success and want to reward you for the role you play in it,” CEO Erginbilgiç I said in Internal notes for employees.

Even when businesses are hitting a wall, they pay for hiking as Heil Mary and try to turn things around. Thousands of times Volkswagen German employees were surprised at the salaries cuts and factory closures, an automaker I provided it Tennessee plant workers have raised wages by 14% over four years.

rear Exxon Employees faced a tough time in pay freezes, a 401(k) suspension and a fierce layoff. I changed that song. On average, workers received a 9% raise, exceeding inflation levels.

“Our performance reflects the hard work, commitment and perseverance of our employees,” said Amy von Walter, a spokesman for Exxon. I said. “We take great pride in the exceptional business outcomes our team has provided, despite a period of uncertainty and significant change.”

This story was originally introduced Fortune.com