Wal-Mart Announces Employee Bonuses

Company Breaks Decades-Old Practice

Last updated Thursday, March 22, 2007 5:30 PM CDT in Business

By Anita French
The Morning News

    Attention, Wal-Mart employees. You're getting a bonus.

    Wal-Mart Stores Inc. said Thursday it has awarded bonuses totaling more than a half-billion dollars to more than half of the Bentonville-based retailer's hourly employees in the United States.

    The world's largest retailer also said it has started new programs to recognize service and performance by employees, which the company calls "associates."

    What's noteworthy is not that Wal-Mart hasn't given employee bonuses before, but that this is the first time the company has announced the amount, said spokeswoman Sarah Clark.

    "There were several different initiatives we were introducing ... and we believe this is one way to reflect that this is how we're making Wal-Mart an even better place to work," she said.

    The announcement said the company had awarded more than $529.8 million in bonuses to a total of 813,759 Wal-Mart store and Sam's Club hourly workers in the United States. On a simple average, the bonus comes to $651 per qualified employee. The company employs about 1.3 million people nationwide.

    The release did not specify the basis for allocation of the bonuses, or say how much money went to workers being rewarded for different reasons, such as longevity or superior performance.

    The company has previously provided extra money to workers once a year through a program that provided what were called "My$hare" bonuses, allocated on the basis of store performance. Those bonuses will now be distributed quarterly, the release said, "to reward performance on a more frequent basis."

    Wal-Mart's largesse didn't silence its critics. Washington-based Wal-Mart Watch and Wake-Up Wal-Mart both gave little praise for the action, going so far as to suggest the company was trying to blunt criticism over Wal-Mart directors awarding President and CEO Lee Scott a $22 million stock bonus this month -- despite the company's recent lagging sales and sluggish stock performance over the past six years.

    "That is certainly not the case," Clark said about the accusation. "We have always recognized our associates for more than a decade and have given bonuses."

    But Patricia Edwards, retail analyst with Wentworth, Hauser and Violich in Seattle, said she would be "shocked" if Wal-Mart announcing its employee bonuses for the first time wasn't in response to critics.

    "I think it's very good PR to make sure that the critics know you are doing that for employees. I applaud Wal-Mart for announcing it. At a time when you're under fire as a corporation, it's an excellent idea to let the public know what you are doing for employees," Edwards said.

    Wake-Up Wal-Mart spokesman Chris Kofinis criticized the company in an e-mail for not revealing the amount of last year's employee bonus and the number of employees who received it, "so it is impossible to determine whether employees fared better or worse this year," he said.

    David Nassar, executive director of Wal-Mart Watch, said in an e-mail that while the announcement by Wal-Mart was "welcome news," his organization would like to see the company raise its employees salaries and provide better health benefits.

    Among the new programs outlined in Wal-Mart's announcement are what the company called "Servant Leadership" bonuses, recognizing employees of 20 years or more with an extra week of pay. More than 13,400 employees have been with the company 20 years or longer, the company said.

    Also announced as a new program was the "Customer Champion" award, providing cash bonuses to employees "who go above and beyond in providing excellent customer service." That program will be launched during the summer, the company said.

    -- The Associated Press contributed to this article.

    Razorback Central

    Reader Comments (31 comment(s))


    The following comments are provided by readers and are the sole responsibility of their authors. The Morning News does not review comments before their publication, nor do we guarantee their accuracy. By publishing a comment here you agree to abide by our comment policy. If you see a comment that violates our policy, please notify the web editor.

    And the mgrs wrote on Mar 22, 2007 6:18 PM:

    " shared the same total of 529 mil "

    Woot woot wrote on Mar 22, 2007 6:33 PM:

    " Yeah tell the world but alot of us did not even know the amount of our bonus until this past week when we could look at our check stub online . keep up the good communication "

    Same old devious tricks wrote on Mar 22, 2007 7:13 PM:

    " Yes, they did pay 529.8 million, but it not only went to the associates, it went to the management, market managers, personnel managers, asset protection managers, apparel managers, regionals, and divisionals. They should subtract all those out and give the total paid for hourly associates only, that would eliminate the distortion. Just shopped at a Wal-Mart today, and congratulated the associates, they were not the joyous souls the company has portrayed, they got $145. Why? Because the company chose to do all those remodels last fall, and the associates were told they had to pay for the remodel. Right or wrong, there are not an overabundance of joyful associates out there, and Wal-Mart never learns, they continue to distort the truth, instead of telling it. "

    To employee's and wrote on Mar 22, 2007 8:36 PM:

    " general public who do not believe Wal-Mart is the place to work, then go elsewhere, stop working for and employer you are unhappy with. to the general public, don't shop there, stop complaining, managment are employees as well and they put in the long hours, 60-70 hour week with a lot of stress at the level they are, they have worked hard to be in the position they are in, so they deserve the bonus just as all employee do, you speak of the employee who only received 145.00, did you ask how many hours a week they work or how long they have been with the Company?, They must be doing something right - you are shopping there. "

    Confucius say... wrote on Mar 22, 2007 9:22 PM:

    " There is a correlation between whining and lack of productivity. Confucius say you no good work but whine all time you no big bonus. "

    No One said the managers wrote on Mar 22, 2007 11:31 PM:

    " don't deserve bonuses. They most certainly do. The comment was that wal-mart should provide the number of dollars paid for ONLY the hourlies, because the figures are distorted when it includes management and officers of the company. It would be interesting to see. "

    ex-walmartian wrote on Mar 23, 2007 1:06 AM:

    " I no longer shop at Wal-Mart and no longer work for them. Am I entitled to an opinion about Wal-Mart? "

    The Bottom Line wrote on Mar 23, 2007 1:54 AM:

    " The bottom line is that Walmart will continue to pay its' associates as little as possible while gleaning the most productivity for that meager payment--just like every other mega corporation. They will offer just enough incentive bonuses to "prime" the pump and offer the potential of hope to its hourly associates. I do not get any hours and my wage rate is capped, BUT I get a $400 bonus! That is GREAT! "

    To the bottom line wrote on Mar 23, 2007 10:22 AM:

    " You are right. I am glad you got the bonus. Wal mart is just alerting the media so that it will appear to the casual reader tht they are treating their employees fairly. Big Blue sounds like he either doesn't work for wal mart or is too high up on the wal mart food chain to understand anyone else's problems. Associates should make more for the stuff they put up with. Some customers (not all) can be really rude and some of wal mart's policies can aggravate customers and who takes the blame? "

    To Ex-walmartian wrote on Mar 23, 2007 11:53 AM:

    " you are entitled to an opinion about Wal-Mart, just like we are entitled to an opinion about your opinion as much as you are then entitled to an opinion about our opinion towards your opinion...etc. "

    I'm an Ex Walmartian too wrote on Mar 23, 2007 2:01 PM:

    " I quit after 18 years when they capped my pay. The bonuses are across the board. They are not given in merit. They in no way recognize individual performance. That is the reason I quit and I continue to beleive that Wal-Mart will decline quickly. You cannot run a company where you do not recognize finacially the top performers. Giving everyone in the store, the same dollar amount makes the top ones feel misused and the slackers (who will pig out at the potlucks)whine for more and anyone who has worked at Wal-Mart will know exactly what I mean. That is why I know over time the best of the best will leave, and Wal-Mart is going to be made up of those slackers, probably in union garb, pigging out at the free food table. What a terrible mistake to make. Always take care of the best people first. ALways. "

    20 Years Wal-Mart wrote on Mar 23, 2007 2:54 PM:

    " I worked for Wal-Mart for 20 years and I was paid a decent wage and given more oportunity than I even relized I had. I left to go to work for a supplier and after a few short months that supplier then moved my job back to their Headquarters. Wal-Mart is not perfect but it is a solid company that gives you all the chances that you are willing to work for. There are bad managers at Wal-Mart the same as anywere else but the opportunty is there. I started part time as a truck unloader and left as a manager. I chose to be there and made that choice. You bet there are problems with pay but every time Wal-Mart tries a new plan they get slammed by people that don't have a dang thing to do but dog Wal-Mart. There are people that their jobs are to find Wal-Mart flaws. Good grief they are just ticked because union memeberships are going down because they pay them selves out of jobs. Ford, Chevy, many airlines are dying on the vine because of $25 dollar an hour plane loaders. Lets get real, if you are trying to support a family on minimum wage you will need help from the government. It does not matter if you are working at Wal-Mart or a local gas station. Wal-Mart has big numbers because they have big sales but they are far less profittable than many smaller companies because of the items they sell. "

    20 Years Wal-Mart wrote on Mar 23, 2007 3:00 PM:

    " You don't make much money on food and toilet paper. The sales numbers are great but the Profits are far far down as compared to Exxon or Microsoft. Wal-Mart also has large numbers of workers that are unskilled and therefore they are going to get paid less. Every company has entry level jobs but Wal-Mart has jobs and if you are willing to work you can go up in the company. It is easy to complain about Wal-Mart but what in the world is Wake Up and Wal-Mart watch doing but looking for cracks so they can make their money off of Wal-Mart through union dues. They do not care a rats backside about people. They are a company that produces nothing but negitivity and hot air. "

    What's Hurting Wal-Mart wrote on Mar 24, 2007 9:22 AM:

    " What's hurting Wal-Mart is not the union groups who are trying to tap into another source of revenue. What IS hurting Wal-Mart is they HAVE NOT maintained the same principles that Sam built the company on. That's where it starts, and that's where it will end. "

    20 Years Wal-Mart wrote on Mar 24, 2007 11:45 AM:

    " To What's Hurting Wal-Mart, Sam was very big on change and new ideas and so doing made many mistakes and had to backtrack or totally change direction on many occasions. It happens to every business that tries to improve operations. I would say that unless you can speak to the departed you know nothing more than the people running the company. Could you win the Super Bowl if given a chance too? Mistakes have been made and will be made in the future but WM is so much under the spotlight that things are magnified hundreds of times. Outside attacks from union groups do cause havoc and cost money because you have to react and make sure that you have the bases covered so they do not grab with their greedy little fingers. To Exwalmartian is correct, how long has she been with WM, how many hours did she work, what job did she have before she started at WM? Why did she come to WM? Why are you still there after 6 years if it is so bad? Everywhere you go you will be paid for your skill level. Wal-Mart does not have to pay high wages for unskilled labor just because they are huge. They are not required nor should they be the saviour of the U.S. Things can always get better for sure but WM is no worse than every other company out there. WM has problems, no doubt but the bottom line is what company doesn't? "

    10 year associate wrote on Mar 24, 2007 10:08 PM:

    " corporate still plays games......the average hourly pay is peanuts....the bonus averages about 150 to 200 for full time employees ....but they have capped pay and the highest raise is 60 cents and the average is 40 cents.....so how does ceo scott deserve $22 million on top of his multi million dollar salary......?????? walmart is heading where Home Depot is with poor customer service and not taking care of the day to day worker who really services the customer.....I have opend 3 new stores for walmart and it all the same.......associate moral is at the bottom and will not be improving.... "

    Meeeee wrote on Mar 25, 2007 12:10 PM:

    " Let's see...our bonus averages nearly $2 a day if you figure it up, our store got $524...minus the taxes...well $1 a day. What I see is funny, our store manager always goes on vacation right after the bonus...funny he can afford it... "

    Meeeee wrote on Mar 25, 2007 12:15 PM:

    " Another thing...why are fired employees getting bonuses? In my eyes, they violated company policy and they should forfeit the check to the people who are obeying policy and working their butts off!!!!! Customer Champion award...I work my butt off to help customers, I bet I will never see any CASH bonus out of that. If they think about it, associates will abuse that too...hey, you call in one for me, I'll call in one for you...I expect that to happen!!! "

    Hard Worker wrote on Mar 27, 2007 10:17 PM:

    " We did not get one cent for a bonus at our store. We got a steak dinner and that was it!!! We work very hard and management hires old and slow people that watch the customer walk out the door with big ticket items. They are now giving us our work hours from the home office. Some associates that have been at wal-mart for a short while are getting 40 hours a week and some of those who have been there years longer are getting their hours cut. They want us to drive to work for a 4 hour day. Now, they want us to come in on our day off to attend a 1 hour meeting. They must think our time and gas are cheap! We sometimes work 7 or 8 days in a row, with no overtime because their weeks start with Sat. and ends with Fri. This way they don't have to pay overtime, because you didn't work over 40 hours in one week and they can make you work most weekends this way. At the meetings, they want us to let them know how to improve Wal-mart. We let them know, but nothing is done, unless it is something to help get management a bonus! We have associates quitting or moving to another store because of all the bull going on. I predict.... Wal-Mart will go down the toilet in no time if they contiue on this path. "

    Assoc 2 wrote on Mar 28, 2007 1:29 PM:

    " It's against company policy to work more than 6 days in a row, isn't it? That's what they tell us. You didn't get a red cent for a bonus? Dang!! "

    holiday wrote on Apr 1, 2007 9:03 PM:

    " Got holiday pay for Good friday but no pay for Easter Sunday when Wa-Mart and SAMs are closed....wonder if any assoc out there will get paid? "

    managers should get payed wrote on Apr 2, 2007 7:44 AM:

    " HOW MUCH DO YOU THINK SOME OF THE MANAGERS GET PAID AT BONUS TIME? MY HUSBAND WHICH WORKS A 60-70 HOUR WORK WEEK GOT $1900 BONUS ABOUT A $1000 AFTER TAXES. SO WHEN AN HOURLY THAT WORKS 40 OR LESS HOURS GETS $560 WHO BENEFITED MORE? WALMART IS A COMPANY JUST LIKE ANY OTHER AND I DO THINK THEIR WAGES ARE FAIR. WOULD YOU PAY AN UNSKILLED PERSON $19 AN HOUR TO DOOR GREET? OR A CASHIER THAT TO RUN A REGISTER? WHAT ABOUT A STOCKER? MAYBE A DEPARTMENT MANAGER AND SHOULD IT NOT VERY FROM STATE TO STATE? PEOPLE IN CALIFORNIA GET PAYED MORE THAN THE ONES IN INDIANA. COST OF LIVING IS DIFFERENT FOR BOTH. I REALLY THINK PEOPLE SHOULD NOT CRYOUT LOUD ABOUT HOW MUCH THEY MAKE IF THEY DON'T WANT TO DO THOSE JOBS THAT PAY MORE OR DON'T HAVE THE SKILLS BECAUSE IT IS THEIR OWN FAULT NOT WALMARTS. "

    Associate as well wrote on Apr 2, 2007 12:37 PM:

    " W/M doesn't close for any holidays except for Christmas! We hear that's about to change too...they'll be open til 6 p.m...but we'll see for sure! Poor assistant managers, they got paid double what an associate got paid for a bonus, assistants never lift freight, never stock, or do any physical labor...boo hoo on their bonus. "

    Lisa wrote on Apr 3, 2007 8:03 AM:

    " There is a reason the assistant managers don't do those things, they have other responsibilities. That is why they are paid more. Make yourself more valuble to the company and maybe you will get a bigger bonus. "

    Assoc As Well wrote on Apr 3, 2007 11:49 AM:

    " What responsibilities are those again? Ours hang around each other on the salesfloor or in the office, or on smoke breaks outside, they don't follow company policies. Ours start and run the rumors through the store. I'm not worried about the itty bitty bonus I got...I'd rather stay a peon and collect the bonus by doing the least amount of work possible, just like the rest!! "

    Lisa wrote on Apr 3, 2007 12:41 PM:

    " IF that is the situation in your store then you need to notify someone at corporate so that it can be addressed. (I assume you have not done this already.) I have worked in numerous stores and all the managers I was assocaited with worked very hard - both in front of and behind the scenes. (For example, some of the best planning meetings I attended were while on smoke breaks. Looks can be deceiving!) "

    To Assoc As Well wrote on Apr 3, 2007 11:46 PM:

    " Stay a peon please! Many management personnel started as a peon and busted their gludious maximus to achieve higher goals for themselves. Yes, some are not that great and deserved to get kicked in the gludious maximus, but please don't disrespect those that work very hard to manage peons such as yourself. But since you already have basically stated your desire to be a part of the lowest common denominator, stay there, and let someone else with work ethics and self-worth aspire to achieve better for themselves. "

    Assoc As Well wrote on Apr 4, 2007 11:26 AM:

    " Management is a joke at our store...SERIOUSLY. Home Office thinks we have a great crew, but we don't! Our store warns us when HO is coming in, to clean up, do things the right way, hide stuff, etc...I wished the HO would come in UNANNOUNCED and bust em. Yes, HO has been called on a few occassions and they have fired certain associates, but the managers tell the associates who got fired, we only had to do this cause the HO knew about it and we have to follow policy! HO needs to do some random checks!! "

    Nothing New wrote on Apr 4, 2007 11:33 AM:

    " Every company I have ever worked for or been associated with has always had the mass cleanup before anyone from corporate came to visit. That is very normal. "

    westerly walmart woman wrote on Apr 4, 2007 5:08 PM:

    " when are we getting our bonuses? they tell us we are not because we are 'seasonal'.....excuse me....if we are 'seasonal' than why are we a 'superstore'- complete with groceries, open 24x7? can someone clear this up or did i miss something? i've been there 8 years...i should think i'd get something? hourly yes, hard worker, yes. pleasant and go above and beyond...you bet! Forget 'roll back'...roll forward...the bonus that is! "

    To westerly wrote on Apr 5, 2007 1:41 PM:

    " This is probably not the correct place to ask your questions. You need to be directing them to your managers or the corporate office. And please, let us know what you find out. Good luck! "


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