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Walmart to Phase Out Quarterly Bonuses, Lift Hourly Wages

Walmart will end its quarterly employee bonus program after raising base pay by $1 an hour.

Walmart  (WMT) - Get Walmart Inc. Report is planning to end its decades-old quarterly bonuses for store workers starting Jan. 31, amid the giant retailer's plan to increase hourly wages. 

The Bentonville, Ark., company said it would end the benefit, called MyShare, at the end of the company's fiscal year, according to a memo to staff that was viewed by The Wall Street Journal. 

"We are rolling MyShare into associates' base pay going forward," the memo reportedly said. 

A Walmart spokesperson told the Journal that hourly pay was the most important part of its staff's compensation, while the bonus made up just a portion of the pay increase workers are receiving. 

For decades the MyShare bonuses were distributed annually based on store performance. A variety of measurements, including attendance and theft, determined the size of the bonuses, according to the Journal. 

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Walmart said last week that it would raise its starting wage to $12 an hour from $11. The company in 2018 had set the wage at $11. 

The move now increases pay for about a third of Walmart's 1.6 million U.S. workers. The increase is effective at the end of September. 

A number of Walmart's competitors have also raised their starting wages, some to $15 an hour and above. Employees at Amazon  (AMZN) - Get, Inc. Report and Target  (TGT) - Get Target Corporation Report recently saw their base pay rise to $15 an hour

Walgreens Boots Alliance  (WBA) - Get Walgreens Boots Alliance Inc Report said it would raise its minimum wage to $15 an hour by November 2022. 

Walmart shares at last check were down 0.5% to $146.67.

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