Wal-Mart’s Proposed Wage Hike Compared to Other Expenses

This morning, WalMart’s CEO announced a comprehensive pay increase for hourly associates along with a boost in benefits and new training programs to help employees advance in their careers.

The move is expected to cost $1 billion to the company. This is a very large amount of money, but some are saying that it is not enough and only a very small amount compared to the size of WalMart. Others are saying that this is a great move by the company and will be just what the U.S. economy needs to turn the corner.

I decided to take a look at the numbers in WalMart’s 2014 Annual Report. Here is a list of the numbers that I chose for comparison. Disclaimer: I chose some of the categories solely because I thought the comparison would be interesting, not necessarily because I thought they were suitable for direct comparison with the proposed wage increase.


 

The one thing that I found interesting in these numbers is the comparison between the WalMart wage hike ($1 billion) and their accrued wages and benefits for 2014 ($4.6 Billion). Based on these figures alone, this seems to represent a company-wide wage increase of over 21%. This sounds like a very good deal for WalMart employees to me.

 

 

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