Wal-Mart shrinks board to 12, founder’s son Jim Walton to retire

By: |
April 21, 2016 11:33 AM

Wal-Mart Stores Inc said on Wednesday it will shrink its board by three members to 12, bringing it closer to U.S. corporate norms in a move the largest U.S. retailer hopes would allow it to respond more nimbly to rapid market changes.

Wal-Mart Stores Inc said on Wednesday it will shrink its board by three members to 12, bringing it closer to U.S. corporate norms in a move the largest U.S. retailer hopes would allow it to respond more nimbly to rapid market changes.

The change will take place after Wal-Mart’s annual shareholders’ meeting on June 3, it said in a statement.

The revamp includes the retirement of Jim Walton, 67, the youngest son of the late Wal-Mart founder Sam Walton, after 11 years on the board, the retailer said. His son Steuart, 34, has been nominated for a seat on the board.

Also departing are Aida Alvarez, a former member of U.S. President Bill Clinton’s cabinet, retail industry veteran Roger Corbett, and Mike Duke, who was Wal-Mart’s president and chief executive from 2009 to 2014.

Wal-Mart, which posted a double-digit profit decline last year as the dollar appreciated and costs rose as it hiked entry-level wages, said a smaller board would lead to better and faster decision-making.

The average board size for companies in the Standard & Poor’s 500 index was 10.8 last year, according to the Spencer Stuart board index.

“The changes we are making are designed to maximize our effectiveness as we adapt to ever-evolving customer requirements,” James Cash, the board’s lead independent director, said in the statement.

Both Alvarez, 66, a member of the auditing committee, and Corbett, 73, the former CEO of Australian retailer Woolworths Ltd, had been on the board for a decade, the normal tenure for independent directors, Wal-Mart said.

Duke’s departure two years after leaving the CEO post is also in line with historical standards, the company said.

Wal-Mart also said on Wednesday that CEO Doug McMillon’s total compensation last year was valued at $19.8 million, up from $19.4 million in 2014.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1August non-life premiums rise; health insurance marches ahead of vehicles amid coronavirus
2Apple Store Online goes live in India with trade-ins, shopping assistance and other benefits
3‘Demand for quality housing rising steadily in tier II & III cities’