Wal-Mart Increases Employee Bonuses
Wal-Mart Stores Inc. handed out $933.6 million in bonuses to its rank-and-file U.S. workers on Thursday, an increase of 46.7% compared to last year.
The company, the largest retailer in the nation, said it will pay bonuses to about one million of its hourly workers. Its U.S. work force last year grew by about 33,800, to 1.45 million, the company said.
The Bentonville, Ark.,-based company has been a strong performer throughout the recession, posting solid sales and earnings gains while many other retailers have been suffering double-digit percentage declines.
Mike Duke, who took over as chief executive six weeks ago, announced the bonuses in a memo to employees Thursday.
Including profit-sharing payments, 401(k) contributions and merchandise discounts, Wal-Mart says it is giving workers a record $2 billion this year, an increase of about 11% over last year's $1.8 billion total.
The timing of the bonus announcement comes a little over a week after both houses of Congress introduced the Employee Free Choice Act, legislation that would make it easier for employees to unionize, something that Wal-Mart has long opposed and is lobbying hard against.
Wal-Mart said the bonuses announced yesterday are simply part of an annual program. 'We have been rewarding our associates for their hard work with financial incentives like these for years,' said a spokeswoman, Daphne Moore.
The bonus averages $933.60 for each qualified employee, ranging from cashiers to shelf stockers.
Last year, Wal-Mart paid out about $1.8 billion in awards, including more than $636.4 million in bonuses.
The 2009 awards are based on results at the 3,657 U.S. Wal-Marts and 602 Sam's Clubs.
Wal-Mart reported $401.2 billion in net sales for its most recent fiscal year, which ended on Jan. 31, a gain of 7.2% from the prior year. Income from continuing operations increased 3% to $13.3 billion, and earnings per share rose 6% to $3.35.
Shares of Wal-Mart fell 49 cents to $49.95 in 4 p.m. composite trading on the New York Stock Exchange. |
|
