Largest Shareholder Advisory Group Rejects Multiple Walmart Directors Citing “Staggering Lack of Judgment”

Posted on May 21, 2012 by jway

FOR IMMEDIATE RELEASE
May 21, 2012
CONTACT press@ufcw.org

Largest Shareholder Advisory Group Rejects Multiple Walmart Directors Citing “Staggering Lack of Judgment”

ISS Seeks Ouster of CEO Mike Duke, Former CEO Lee Scott and Board Chair Rob Walton;
Endorses Associate Proposal on Executive Pay

WASHINGTON, DC- In a rare move, ISS, the largest shareholder advisory service in the US, is advising clients to vote against multiple board members of Wal-Mart, Inc, the nation’s largest retailer. The move, announced May 19, comes several weeks after a major report in the New York Times described bribery, corruption and an alleged cover-up potentially involving senior Walmart executives including current CEO Mike Duke, former CEO and current board member Lee Scott, and current board chair Rob Walton. Another advisory firm, Glass Lewis, also recommended that clients vote against Duke and Scott, as well as five other directors. Walmart’s annual shareholder meeting is June 1 in Bentonville, AR.

“If the account in the New York Times is accurate,” ISS wrote, “the decision by Scott and Duke to enable executives implicated in the bribery allegations to conduct the company’s investigation into those allegations reflects a staggering lack of judgment.”

ISS also recommends a vote in favor of Proposal #6 on executive compensation disclosure, saying “a vote FOR this proposal is warranted in light of the company’s track record of making continual changes to its performance metrics without providing sufficient rationale about how they promote long-term shareholder value.”

Proposal #6 is sponsored by individual shareholders Carlton Smith, Girshriela Green, Jackie Goebel and Mary Tifft, who are active Walmart Associates and members of the Organization United for Respect at Walmart. Collectively they have more than 60 years of service with the company. The proposal calls on the board to make an annual disclosure explaining how its choice of executive incentive targets are in the interests of long-term shareholders. The four sponsors of Proposal #6 have pointed out that the current bonus system creates incentives for aggressive growth, even if that growth is not profitable.

“All we are asking for is more disclosure about how they are designing their executive bonus plans,” said Carlton Smith, current department manager and 16-year associate in southern California. “The company is saying, ‘Don’t worry, you can trust us.’  However, Walmart’s current leaders have lost our trust. We saw what happened in Mexico when the company prioritized growth above everything else. It is our hope this proposal will help get the company back on track.”

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Making Change at Walmart is a campaign challenging Walmart to help rebuild our economy and strengthen working families. Anchored by UFCW, we are a coalition of Walmart associates, union members, small business owners, religious leaders, women advocacy groups, multi-ethnic coalitions, elected officials, and ordinary citizens who believe that changing Walmart is vital for the future of our country.

Comments

  • Anonymous

    let Vote by make Walmart join the United Food and Commercial Workers Union for all Walmart Cashier Workers and for all Walmart Pharmacy Workers and for all Walmart Produce Workers and for all Walmart Deli Department Workers and for all Walmart Bakery Department Workers, let Vote by make Walmart Join the Teamster Union for all Walmart and all Sam’s Club Truck Drivers Workers and for all Walmart Hardware Department Workers and for all Walmart Gardening Department Workers and for all Walmart Stock Person Workers and for all Walmart Customer Service Desk Workers and for all Walmart Courtesy Association Workers and for all Walmart Maintenance Association Workers and for all Sam’s Club Forklift Driver@Stock Person Workers and for all Sam’s Club Maintenance Workers and for all Sam’s Club Meat Cutter@ Meat Wrapper Workers and for all Sam’s Club Cashier Workers and for all Sam’s Club Pharmacy Workers and for all Sam’s Club Produce Workers and for all Sam’s Club Cafe Workers and for all Sam’s Club Bakery Department Workers and for all Sam’s Club Membership Desk Workers and for all Sam’s Club Cart Attendant Workers, let Vote by make Walmart Join the Communication Workers of America Union for all Walmart and all Sam’s Club Workers. Let Vote by make Walmart Join the United Auto Union Workers For All Walmart Tire@Lube Express and for all Sam’s Club Tire@Vehicle Battery Installment Workers by make Walmart give all Walmart Workers a Living Wage With Affordable Health Care right of away please without close down all the Walmart Store and all Sam’s Wholesale Club

    Thank You Very Much United Food And Commercial Workers Union And Teamster Union And Making Change At Walmart And OUR Walmart And Employee Free Choice Act For Trying Make Walmart A Better Place To Work 

                                                From Tom P Noonan

  • Smallbiziowa

    Walmart has been the driving force in encouraging the outsourcing of American Manufacturing jobs to china and mexico, all for the sake of profit, and outrageous bonuses for the top few. They require all suppliers to lower their prices by 9% every year. If they are already having their products made in china or mexico, then their only recourse is to buy cheaper materials. 5 years ago a cheap pair of sneakers lasted me 1 year. Now they don’t even last a month. If we have to buy the same items over and over, how much do we really save???. I for one am fed up with buying cheaply made items at walmart. I’m switching to Target until walmart wakes up….

    • Anonymous

       Wal-Mart sells what the customer wants. If they didn’t they would soon go out of business. If the customers wanted expensive US made sneakers, then they would be selling them for sure. If they sold the sneakers that the customers didn’t want, then their competitors would sell them and Wal-Mart would go under. This is such a simple concept it is hard to believe that some folks just can not seem to grasp it. Instead of getting mad at Wal-Mart for doing exactly what the people want, get mad at the people who buy them. When you buy something at Wal-Wart, you are in effect place another order for them to replace the one you have purchased. Think things through.