Walmart's CEO on what store managers making $600,000 do for business
Walmart gave managers a major pay boost, sparking a clear shift in performance
Walmart, the nation’s largest retailer, has seen a significant turnaround in store performance thanks to a bold move to raise its store managers’ compensation, with top earners now making up to $600,000 annually. Speaking at the National Retail Federation’s 2025 State of Retail & the Consumer event, Walmart U.S. CEO John Furner shared how this pay hike has transformed the company’s operations, even as it navigates the pressures of President Donald Trump’s escalating tariffs.
Last year, Walmart rolled out a revamped compensation plan, increasing the average base salary for U.S. store managers to $141,000, up from $128,000. With bonuses tied to store profits—potentially reaching 200% of base pay—and stock grants ranging from $15,000 to $25,000 annually, some managers at high-performing locations can now earn between $500,000 and $600,000 a year. “We wanted managers to think and act like owners,” Furner explained, noting that including stock ownership has shifted their focus toward boosting profits and cutting losses.
The results have been striking. Furner reported that stores led by these incentivized managers are outperforming others, with better customer satisfaction scores and stronger financials. This comes at a critical time as Walmart braces for Trump’s latest tariff policies, which impose a 20% tax on Chinese imports on top of existing duties. To shield its bottom line, Walmart has pressed its Chinese suppliers to absorb these costs, a strategy mirrored by competitors like Costco and Target. However, resistance from suppliers and pushback from Chinese officials—who called the move “unfair” during a recent Beijing meeting—have complicated the effort.
Despite these challenges, Walmart’s investment in its managers appears to be paying dividends. Furner emphasized that the company isn’t abandoning its low-price promise to customers, though he acknowledged that some price hikes might be unavoidable if tariff pressures persist. With over 330 stores in China and a heavy reliance on imported goods, Walmart remains vulnerable to trade tensions, but its focus on empowering managers could provide a buffer. As Furner put it, “Engaged leaders drive engaged teams,” a strategy that’s helping Walmart weather an uncertain economic landscape.