Walmart and Sam’s Club provide a robust compensation package for organizational leaders, including:
· Restricted Stock Units (RSUs)
· Performance Share Units (PSUs)
· Walmart Deferred Compensation Matching Plan (DCMP)
· 401(k) Plan
Your compensation package is a powerful tool that, when evaluated correctly, can be structured to maximize its full earning potential. At Heritage Oak, our goal is to integrate your entire financial landscape with your benefits elections to ensure every decision made works toward your long-term success.
Key Components of Your Compensation:
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Equity Compensation: RSUs & PSUs
RSUs: Granted annually, vest monthly or quarterly over 3–4 years. Taxes due at vesting.
PSUs: Awarded to officers based on performance metrics, with a 3-year cliff vest schedule.
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Planning Opportunities:
Use equity cash flow to boost contributions to tax-advantaged accounts.
Diversify WMT stock to reduce concentration risk.
Adjust tax withholding—default is 22%, often lower than actual rate.
Deferred Compensation Matching Plan (DCMP)
Eligibility: If eligible for deferred comp, we will help you calculate your current account value against the projected value.
Bonus vs. Salary: Guide you on deferring your bonus vs. your salary
Match: Help you factor in the match received from Walmart based on your contribution
Distribution: Help you choose lump sum or installments at separation.
Length: Determine the benefits of deferring your pay over a longer timeframe (5-years vs 10-year payouts)
Timing: When to start taking your deferred salary once you retire
Planning Opportunities:
Defer income now (at up to 37% tax rates) and receive it later at a potentially lower rate
Contribute enough to capture the full match offered.
Coordinate DCMP contributions with 401(k) limits to maximize tax benefits.
401(K) Plan
Match: Walmart offers a generous match, and we want to ensure that you are on track to contribute to your full legal match for the year.
Prioritization: Knowing if maxing out your 401(k) before DCMP or other investments makes sense for you.
Pre-Tax vs. Roth: For those in high tax brackets, pre-tax contributions often provide greater long-term benefit. Find out more on what form of contribution makes sense for you.
The Bottom Line
Timing matters. Tax implications matter. Every decision impacts your long-term financial picture.
At Heritage Oak Wealth Advisors, we help Walmart leaders:
Navigate equity vesting and tax strategies
Optimize DCMP elections for maximum tax savings
Coordinate 401(k), DCMP, and equity for a holistic plan
We take the complexity out of compensation planning so you can focus on what matters most to you.
Heritage Oak Wealth Advisors is not affiliated with Walmart. While Heritage Oak communicates with its clients regarding Walmart employee benefits and educates itself on available Walmart benefits, there is no guarantee that the information provided is accurate or complete. Walmart employees are encouraged to contact their employer directly with any questions regarding their specific employee benefits.