Walmart, Chipotle are splitting the wealth of a record stock market in a way they haven't in decades

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Walmart and Chipotle are splitting stock for the first time in decades. With large lower-wage workforces, they say getting shares to employees is a priority.

Walmart recently completed its first stock split in decades; Chipotle is planning the first stock split in its 30-year history to be completed in June.

Chipotle and Walmart have been among the movers in the universe of big U.S. corporations when it comes to raising pay and offering debt-free college tuition assistance to large, low-wage workforces. Now, they're sharing another tactic the companies say will have a long-term payoff for employees: publicly traded stock splits.

"The idea that all of these employees are going to rush out to the market and start buying equity frankly doesn't hold a lot of water," said Michael Kestenbaum, managing director of Gallagher's executive compensation practice. Chipotle, meanwhile, offers a quarterly opportunity to buy its common stock at a price of 92.5% of the lower of the fair market value on the first and last trading days of each offering period, according to a

Prior to its IPO, Google provided significant education to employees related to stock options and financial literacy, said Clemens Kownatzki, assistant professor of finance at Pepperdine Graziadio Business School."Without education, it's pointless," he said. Chipotle is also trying to boost the financial education it offers to employees. It has a new partnership with SoFi that gives Chipotle employees access to the SoFi at Work Dashboard, a financial well-being education platform. This includes an assessment of current financial outlook, as well as suggestions and tools, according to a spokesperson.Even stellar education can fall short when it comes to prodding workers to buy company shares, Kownatzki said.

 

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