iStock.com/Sundry Photography
Walmart Wants More Employee Ownership in the Company
February 6, 2024
Last week, Walmart made two shifts that will create a simpler path for employees to own company shares, according to Business Insider.
Last Monday, Walmart said it will reward store managers with annual stock grants of up to $20,000. Just a day later, it unveiled a 3:1 stock split, making the purchase of full shares more attainable for individual investors, especially employees taking part in Walmart’s share-purchase program.
CEO Doug McMillon explained that this transition aligns the company more closely with founder Sam Walton’s vision of enabling associates to easily acquire whole shares. McMillon told John Furner, who leads Walmart’s U.S. division, on Furner’s podcast Thursday, “Sam and Helen both wanted all of our associates to participate in the upside of the company. One of the ways we do that is with a share purchase plan.”
Furner said in a video announcing the stock grants that Walmart wanted store managers to “act like owners,” and he explained that the grants will range from $10,000 to $20,000. He said in the video, “A Walmart store manager is running a multi-million dollar business and managing hundreds of people, and it’s a far more complex job today than when I managed a store.”
Since spring 2019, Walmart has maintained a strong share price exceeding $100. McMillon said that due to this high price point, it’s difficult for an associate to purchase full shares through payroll deduction. However, with the new 3:1 split, if the share price is $165, associates can buy the share for around $55. This adjustment makes it far more within reach.
Over the year, those who own stocks will receive dividends, which allow associates to enjoy the success of the company.
McMillon stated that over 400,000 associates participated in Walmart’s Associate Stock Purchase Plan, which allows eligible associates to buy shares through payroll deductions. Additionally, the plan offers a 15% company match on the first $1,800 invested annually.
Although the share purchase plan has existed for a while, McMillon expressed in the podcast his hope that this moment will serve as a reminder to everyone that it’s another avenue for saving for the future.
Recent News
New Trader Joe’s Opens in SF After 10 Years
San Francisco’s Hayes Valley neighborhood welcomed a highly anticipated new addition on May 17, 2024, with the grand opening of a Trader Joe’s at 555 Fulton St., on the corner of Laguna Street. This event marks the end of a decade-long wait for residents who have been eagerly looking forward to a new grocery store in their area.
China’s Property Market Boost: Stocks Surge, Copper Hits Highs
The Chinese government unveiled a comprehensive support package that has sent ripples through financial markets. This initiative includes a slew of measures aimed at stimulating housing demand and addressing the excess inventory burdening developers. The immediate impact was a significant rally in Chinese stocks and a surge in commodity prices, notably copper, which hit record highs.
Mercedes-Benz Workers in Alabama Reject Union
In a pivotal moment for autoworkers in the southern United States, employees at a Mercedes-Benz plant in Alabama have voted against joining the United Auto Workers (UAW) union. The outcome, with 56% of workers voting against unionization and 44% in favor, comes as a significant setback for the UAW’s efforts to expand its influence in the region.
Petaluma’s Annual American Graffiti Celebration
This weekend, Petaluma gears up for its annual homage to the iconic film “American Graffiti” with an array of festivities sure to delight car enthusiasts and nostalgia seekers alike.