In return for employees' loyalty and dedication, Walton began offering profit
sharing in 1971. "Every associate that had been with us for at least one year,
and who worked at least 1,000 hours a year, was eligible for it," he explained.
"Using a formula based on profit growth, we contribute a percentage of every
eligible associate's wages to his or her plan, which the associate can take when
they leave the company, either in cash or in Wal-Mart stock."3 In 2001, Wal-
Mart's annual company contribution totaled $486 million.