By Paul Ziobro
Wal-Mart Stores Inc. shareholders approved all 14 nominees to
its board by a "significant majority" and shot down three
shareholder proposals, including one calling for an independent
chairman.
Preliminary voting results were disclosed during Wal-Mart's
annual shareholder meeting Friday, which was punctuated by music
performances from Pharrell Williams and Robin Thickeand served
largely as a pep rally for thousands of employees gathered and
listening.
The retailer faced criticism ahead of the vote from two
influential firms that advise shareholders on how to vote on
corporate ballots. Institutional Shareholder Services Inc. called
for approval of the measure to have an independent chairman and
called for shareholders to oppose the nominations of Chairman S.
Robson Walton and former Chief Executive Michael Duke. ISS and
Glass, Lewis & Co. also called on shareholders to pass a
proposal calling on Wal-Mart to publicly disclose whether it has
recouped pay from any senior executives who have caused the company
significant financial harm.
The outcomes of the votes were never in question, however, as
members of the retailer's founding Walton family own around 50% of
the company's stock. But investors' concerns did register in the
final tallies.
Messrs. Walton and Duke's nominations were opposed by 11.1% and
13.2% of the vote, respectively. The proposal for an independent
chairman, meanwhile, won 15.4% of the vote. The proposal to
disclose whether pay was clawed back won 14.7% of the vote.
The meeting comes as Wal-Mart struggles to turn around its U.S.
stores, where same-store sales have fallen for five straight
quarters. "It was a pretty rough year by anyone's standards,"
Wal-Mart Chief Financial Officer Charles Holley said.
One challenge faced by retailers such as Wal-Mart is the shift
to online sales, which is depriving stores of customer traffic.
"We also need to invent the new to bring together the digital
world of e-commerce with the physical world of our stores,"
Wal-Mart Chief Executive Doug McMillon said.
Wal-Mart executives spoke of using their vast troves of data on
customers and shopping behaviors to help better cater deals to
shoppers.
The meeting featured six musical acts, including Harry Connick
Jr. The annual rite is a tradition started during the days of
company founder Sam Walton to bring employees together and energize
them for the year.
Wal-Mart named Gregory Penner, the son-in-law of Robson Walton,
to the newly created position of board vice chairman. Mr. Penner, a
current director, would serve as chairman at any meeting that Mr.
Walton isn't present.
Write to Paul Ziobro at Paul.Ziobro@wsj.com
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