Wal-Mart Justifies CEO Pay in Proxy Amendment
Wal-Mart Justifies CEO Pay in Proxy Amendment
By Arkansas Business Staff
4/27/2007
Because of a media inquiry regarding the Wal-Mart Stores Inc.’ executive compensation practices, the company on Thursday filed an amendment to its recent proxy in which it reported total compensation for president and CEO Lee Scott of $29.7 million for fiscal 2007.
Here’s the text of the filing with the Securities & Exchange Commission:
“Lee Scott leads the largest and most complex company in the world and has delivered strong financial performance. Last year alone, sales were up $37 billion and income from continuing operations increased by $770 million from the prior fiscal year.
Since he became CEO in 2000, annual sales have more than doubled to $345 billion and income from continuing operations has grown 126 percent to $12.2 billion. Compound annual growth rates are strong in almost every major category: net sales 12.3 percent, income from continuing operations 11.8 percent, EPS from continuing operations 12.9 percent.
“We have maintained double-digit annual growth rates in sales and income from continuing operations, which is almost unprecedented for a company this size. More people than ever are shopping at Wal-Mart and that’s why we are once again the number one company in the Fortune 500.
“More than 85 percent of our CEO’s compensation, as set by an independent board committee, is tied to the company’s financial performance. Lee Scott’s compensation is benchmarked with the CEOs of other publicly traded U.S. retailers and large companies. When compared to other companies, it is among the lowest as a percentage of annual revenue and net income.
“Our associates respect that Wal-Mart has a well-recognized culture of opportunity. They are proud that their CEO started as a manager in the trucking division and has stayed with the company for 28 years. They’re also proud that his leadership – through sustainability initiatives and the $4 prescription drug program – reflects the company’s purpose of saving people money so they can live better.
The Arkansasbusinss.com article that ran April 20 noted that Scott’s total compensation “includes option awards and stock awards that he hasn’t actually pocketed.”
The stock options and restricted stock awards will not vest for several years and are based on the company’s performance, the article said.
Copyright © 2007, Arkansas Business Limited Partnership. All rights reserved.
By Arkansas Business Staff
4/27/2007
Because of a media inquiry regarding the Wal-Mart Stores Inc.’ executive compensation practices, the company on Thursday filed an amendment to its recent proxy in which it reported total compensation for president and CEO Lee Scott of $29.7 million for fiscal 2007.
Here’s the text of the filing with the Securities & Exchange Commission:
“Lee Scott leads the largest and most complex company in the world and has delivered strong financial performance. Last year alone, sales were up $37 billion and income from continuing operations increased by $770 million from the prior fiscal year.
Since he became CEO in 2000, annual sales have more than doubled to $345 billion and income from continuing operations has grown 126 percent to $12.2 billion. Compound annual growth rates are strong in almost every major category: net sales 12.3 percent, income from continuing operations 11.8 percent, EPS from continuing operations 12.9 percent.
“We have maintained double-digit annual growth rates in sales and income from continuing operations, which is almost unprecedented for a company this size. More people than ever are shopping at Wal-Mart and that’s why we are once again the number one company in the Fortune 500.
“More than 85 percent of our CEO’s compensation, as set by an independent board committee, is tied to the company’s financial performance. Lee Scott’s compensation is benchmarked with the CEOs of other publicly traded U.S. retailers and large companies. When compared to other companies, it is among the lowest as a percentage of annual revenue and net income.
“Our associates respect that Wal-Mart has a well-recognized culture of opportunity. They are proud that their CEO started as a manager in the trucking division and has stayed with the company for 28 years. They’re also proud that his leadership – through sustainability initiatives and the $4 prescription drug program – reflects the company’s purpose of saving people money so they can live better.
The Arkansasbusinss.com article that ran April 20 noted that Scott’s total compensation “includes option awards and stock awards that he hasn’t actually pocketed.”
The stock options and restricted stock awards will not vest for several years and are based on the company’s performance, the article said.
Copyright © 2007, Arkansas Business Limited Partnership. All rights reserved.
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