How Much Does the Walmart CEO Make Compared to Store Managers?
When discussing the earnings of Walmart’s CEO, it is important to separate the financial aspects in which the CEO excels from the smaller wages of a store manager. The CEO, Doug McMillon, is certainly one of the wealthiest individuals in the retail industry, as his position comes with a generous salary and a massive stake in the company’s equity.
Breaking Down Mr. McMillon’s Compensation
Doug McMillon, the current CEO, is renowned for his leadership and contributions to Walmart. However, his wealth is not solely derived from his salary but rather is significantly bolstered by his ownership of millions of shares in the company. This combination of a substantial salary and equity stake in the company means that his earnings are much higher than those of the average employee, including store managers.
Understanding the Earnings of Store Managers
A store manager at Walmart, like the one I previously worked for, earns approximately $210,000 including bonuses annually. This is a considerable figure, especially for someone oversees the operations of a retail outlet, but it is minuscule compared to the earnings of the CEO. Across the extensive network of over 11,000 Walmart stores worldwide, the total compensation for these managers amounts to billions each year.
Comparing High Earners Within the Company
While high-ranking executives like the CEO have a substantial salary, it’s also worth considering the shareholding of other directors and executives within the company. The CEO often has a lower shareholding compared to other top executives, which can result in their total compensation being less than that of another executive who holds a greater share of the company’s equity.
Companies such as Walmart typically make public their annual returns and accounts. These documents are required by the equivalent of Companies House and disclose the highest paid individual in the company. Additionally, they detail the number of shares held by each director, which can significantly impact their earnings, particularly if the company declares dividends.
Key Takeaways
Understanding the earnings of Walmart’s CEO versus that of a store manager requires a nuanced view of corporate compensation. The CEO’s earnings are not only from salary but also from significant shareholdings, making it easier for them to earn a substantial income regardless of stock price fluctuations. On the other hand, store managers, though highly compensated, have earnings that fall well short of the CEO’s in terms of both base salary and overall compensation.
It is a complex situation that involves both cash and equity, and it is important for potential investors and employees to have a clear understanding of how these figures are derived and their implications.
Keywords
Walmart CEO, CEO Salary, Walmart Store Managers