Bonuses for Wal-Mart top execs now tied to sales growth
Bentonville, Ark. — As the world’s largest retailer has been challenged to grow sales, the Wal-Mart Stores Inc. revealed in its proxy statement filed with security regulators that executive cash bonuses are now being tied to sales performance – in addition to operating income – in the fiscal year.
According to a Wall Street Journal report, in a regulatory filing last year, the company said it planned to add a sales-related performance measures to part of the cash payment portion of salary “to emphasize the importance of sales growth as a priority for our company.” Wal-Mart executives earn compensation in several forms: base salary, stock awards and a cash incentive, along with other forms of payment.
CEO Doug McMillon’s cash bonus in the last fiscal year was based 25% on total company sales, while 75% was based on total company operating income, according to the proxy. Former chief Mike Duke’s cash payment was based entirely on total company operating income in the year prior. Other executives were also evaluated on company sales performance for the cash portion of their salary, including U.S. chief Greg Foran and CFO Charles Holley.
McMillon’s total compensation for the year ended Jan. 31 was $19.4 million, down 24% from $25.6 million in the previous year.
Wal-Mart annual report points to sustainability progress
Bentonville, Ark. — Global responsibility and sustainability continue to be priorities for Wal-Mart Stores Inc. The company filed its proxy statement ahead of its June 5 annual shareholders meeting, and also issued its annual report, and the 2015 Global Responsibility Report and Global Compliance Program Report.
The Global Responsibility Report outlined social and environmental work over the past year. Accomplishments, according to the company, include:
• Accelerating job mobility: Last February, Walmart announced a $1 billion investment in higher wages, job training and scheduling enhancements.
• Empowering women: Since the launch of its Women’s Economic Empowerment initiative in 2011, Walmart and the Walmart Foundation have made $110 million in grants to support women’s economic empowerment. In addition, Walmart has sourced $11.24 billion from women-owned businesses since 2011.
• Hiring and supporting veterans: Since Memorial Day 2013, Walmart has hired more than 77,000 veterans, nearly 16,000 as part of its Veterans Welcome Home Commitment.
• Lowering the environmental footprint of Walmart’s operations: Advancing toward goal of 100% renewable energy, Walmart continues to expand the development of on-site and off-site solar, wind, fuel cells and other technologies. Today, 26% of the company’s electricity is supplied by renewable sources.
• Reducing waste across global operations: Walmart has set a goal of creating zero waste by providing solutions to improve waste data management and reduce and divert food and materials from turning into waste. Walmart U.S. operations operational waste diversion improved to 82.4% in 2014.
Wal-Mart Stores’ annual shareholders meeting will be held on Friday, June 5, at 7:30 a.m. in Bud Walton Arena on the University of Arkansas campus in Fayetteville.
U.S. House passes cyber-threat information bill
Washington, D.C. — The U.S. House of Representatives passed a long-awaited bill by a vote of 307-116 on Wednesday that would make it easier for private companies to share information about cybersecurity threats with the government without fear of lawsuits.
The bill must be approved by the U.S. Senate before it can be sent to President Barack Obama to sign into law. A similar measure was passed by a 14-1 vote in the Senate Intelligence Committee, and supporters say they expect strong bipartisan support in the full Senate as well.
"At some point, we need to stop just hearing about cyberattacks that steal our most valuable trade secrets and our most private information, and actually do something to stop them," said Rep. Adam Schiff, ranking Democrat on the Intelligence Committee and one of the measure's principal authors.