NEW YORK (Reuters): Walmart (WMT.N) corporate staff are getting new titles and pay packages in the coming weeks to manage labor costs and simplify the structure of the company’s workforce, the Wall Street Journal reported on Saturday.
Starting in November, many corporate workers at Walmart and Sam’s Club, its warehouse chain, will be reclassified into fewer groups of possible titles and pay, the report added.
Base pay and total bonus benefits will not fall for any workers. Around 4%, or 2,000, will receive an eventual reduction in stock-option awards as part of the change, the report said.
The company is making the changes because its corporate roles have become more varied over the past decade through acquisitions and new lines of business such as advertising, Kim Lupo, head of global total rewards for Walmart told the Journal.
The change is “good compensation hygiene,” and ensures Walmart is “appropriately rewarding similar levels of work,” Lupo said.
Workers who will have their stock options reduced will receive a one-time stock-option grant next year to make up for the immediate reduction in total compensation, but stock options will reset at a lower trajectory longer term, the report added.
Earlier this month, Walmart changed the hourly starting wage structure for entry-level store workers.
The change meant that store workers including cashiers, personal shoppers, stockers, self-checkout helpers and associates manning departments such as sporting goods or electronics would all receive the same hourly starting wages that are paid at the store, instead of different levels previously.
Walmart did not immediately respond to a request for comment.