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Walmart (WMT) investors are preparing for a stock split later today.
For the 12th time in 50 years, Walmart will conduct a stock split after the close of trading in an effort to make shares more affordable for its employees, as a Yahoo Finance senior reporter. Brooke DiPalma reported. The shares will trade after the split starting February 26.
Walmart last conducted a 2-for-1 stock split on April 20, 1999. This time, it will be the company’s first 3-for-1 stock split.
This comes amid a flurry of employee-friendly initiatives this year from the world’s largest retailer. The others include offering store managers stock grants of up to $20,000 and a higher starting base salary rate.
I assure you that these are not common practices in the retail sector. But they It should be given the increasing demands on store workers, such as racing through cavernous aisles to fulfill online orders.
Here’s what Walmart CFO John David Rainey told me on Yahoo Finance Live this week when I asked him if a cultural reset was happening within the company:
“You could call it that. It’s an interesting characterization. Look, I think fundamentally for us we want to continue to invest in our associates. Fortunately for us, we have the margin profile as a company right now where we can still do that, invest in our associates but also see our operating income grow faster over time.
“I think a consistent theme throughout my two and a half decades of work is that when we get the operators of our business, the front line, to act as owners, that’s a very good thing for shareholders as well. So we’re very happy to allow our store managers to participate through equity ownership with the grant of shares.”
What’s good for employees could be good for a company’s stock price. makes sense!