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.
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