Understanding Walmart's Restricted Stock Unit Plan

If you're a Walmart or Sam's Club employee, you might have Restricted Stock Units, or RSUs, as part of your compensation package.

While RSUs are a relatively simple form of equity compensation, there are important details and nuances unique to the plan. In this video, we’ll review the basics of the Walmart Restricted Stock Unit Plan to help you manage this income source effectively and intentionally.

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So, what is a Walmart Restricted Stock Unit?

A Walmart restricted stock unit (RSU) is a form of compensation where an Walmart issues company shares to an associate. These shares are delivered to the associate over time upon meeting certain conditions, such as continued employment for a specified period.

Two Important Dates

The first is the Grant Date. This is when you receive the agreement from Walmart that you will receive a certain number of Walmart shares. The number of shares is based on a target, which you can find on your Total Rewards statement. This target can fluctuate based on performance metrics.

The second important date is the Vesting Date. This is when the RSUs convert into actual shares of Walmart stock, which are delivered to your Fidelity account. At this point, you own the shares and can choose to hold or sell them.

At Walmart, vesting schedules vary. They might be annual, quarterly, or monthly. Currently, monthly vesting is the most common for RSUs.

An Example of Walmart Restricted Stock

Let's look at an example. You’re granted 1,080 shares of Walmart Restricted Stock in April 2024 that will vest monthly over three years. Starting in May 2024, you'll receive 30 Walmart shares each month until April 2027. Note that a portion of these shares will be withheld for taxes, with the remaining deposited into your Fidelity account.

Total Rewards Statement

Your Total Rewards Statement is a fantastic resource which you can find on Walmart One. Here, you can see your RSU target, any grants that haven't fully vested, and your detailed vesting schedule.

Wrap-Up

These are the basic mechanics of the Walmart RSU Plan. Understanding these basics helps in managing your RSU income intentionally. If you have any questions, feel free to reach out. We are happy to help.

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Thanks for reading,

Mark Chisenhall, CFA, MBA

Taurus Financial Planning is a Fee-Only Wealth Management firm based in Bentonville, AR. The firm offers comprehensive financial planning, tax planning and investment management to corporate executives across the country.

Taurus Financial Planning is a Registered Investment Advisor with the State of Arkansas. This information is provided as a guide to assist you in your financial planning. The specific examples are provided for illustration purposes only and are not representative of specific investments or guarantees of future returns. Please consult with a professional for specific questions regarding your particular situation. If there is any error or inconsistency between this document and the official company plan documents, your company plan documents will govern.

This publication is for informational purposes only and is not intended as tax, accounting or legal advice or as an offer or solicitation of an offer to buy or sell or as an endorsement of any company security fund or other securities or non securities offering. This publication should not be relied upon as the sole factor in an investment making decision. Past performance is no indication of future results. Investment in securities involves significant risk and has the potential for partial or complete loss of funds invested. It should not be assumed that any recommendations made by the Author, in the future, will be profitable or equal the performance noted in this publication.