Walmart (WMT) has announced it will be adding up to $20,000 in stock grants for US store manager compensation packages. The amount of the grant will depend on the size of the store and the options will be made available starting on February 1.

Yahoo Finance Retail Reporter Brooke DiPalma joins the Live show to break down the latest development for the company and what it could mean going forward.

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Editor's note: This article was written by Nicholas Jacobino

Video Transcript

JOSH LIPTON: Walmart offering new perks for us store managers. The move coming after the retailer announced it's raising the starting base pay and redesigning its bonus plan. Here with the details is Yahoo Finance's Brooke DiPalma. Brooke.

BROOKE DIPALMA: Good afternoon. Well, untypical way to share this announcement, US CEO John Furner actually taking to LinkedIn to share this announcement this morning. The latest effort to attract and retain us store managers is a $20,000 Walmart stock grant for US store managers. That's starting in April.

Now, it is based on the store format. For example, managers with smaller store formats are eligible for less. So for supercenter Walmarts that will be $20,000. But for a typical Walmart, that stock grant will be $10,000. And as you noted earlier, this is the latest incentive for US store managers.

Earlier this month, they moved the US store manager salary from $117,000 per year to $128,000 per year. And they also redesigned that store bonus, store manager bonus program. Now US store managers are eligible for a bonus of up to 200% of their base salary if that manager hits all the targets.

And so if you take this all in consideration and you say that this is the most successful Walmart US store manager, well, then the salary is upwards of $400,000 a year. Now with these three incentives in mind, really US CEO John Furner saying that the job of a US store manager for Walmart is far different than what it used to be. As e-commerce continues to boom, more consumers flocked to stores for grocery.

And really earlier this year or rather late last year, they did also announce that $9 billion plan to modernize in stores. And so ultimately, they're saying here it's a different Walmart store than what it used to be. And they want to offer their store managers more a far different story than what we're hearing from the rest of the retail industry. Macy's recently announcing layoffs as well as Wayfair.

JULIE HYMAN: True. But at the same time, it's something as big as Walmart, it tells you something not just about Walmart but maybe about the bigger job market and the demand for workers right now. Brooke, thank you so much. Appreciate it.