Wal-Mart CEO to become regular 'associate' - Top Stocks Blog - MSN Money
 
Search Top Stocks:

Wal-Mart CEO to become regular 'associate'

Posted Nov 24 2008, 02:28 PM by Anthony Mirhaydari
Rating:

Retailing behemoth Wal-Mart surprised the investing world the other day when it announced CEO H. Lee Scott Jr. would step down in February to serve a two-year stint as a "Wal-Mart associate" -- the term used for all regular employees.

Unlike door greeters or shelf stockers -- who pull down an average annual salary of $19,165 -- the Footnoted blog finds that Scott will be paid $1.1 million a year as chairman of the executive committee of the company's board of directors.

Although Wal-Mart is enjoying a resurgence as the economy slows, Scott's decision to call it quits now seems cowardly. After all, the structural issues that plagued the company before the economic winds shifted in its favor still exist: Its rural growth strategy is tapped out, it hasn't been able to crack the lucrative urban/suburban core as effectively as peers, and efforts to grow internationally have had mixed success.

Now is the time to address these issues, set the stage for long-term growth, and create a lasting legacy. Not only that, but the political landscape has changed dramatically with president-elect Obama's public support of the Employee Free Choice Act, a bill that would dramatically ease the ability of labor unions to organize workplaces.

Instead of addressing these issues, Scott will exit at the top and leave the tough decisions for successor Mike Duke, the current head of international operations that will become the company's fourth CEO.

An internal memo from Rob Walton, the eldest son of Wal-Mart founder Sam Walton, tries to paint a brighter picture.  In it, he notes that the right time for a management transition is now, at a "time of strength and momentum for our company."

Disclosure: I don’t own or control shares in any of the companies mentioned. I can be contacted at anthony.mirhaydari@live.com

Related reading:

Why holiday may be 'Wal-Mart Christmas'

Recession's grim reaper can't catch Wal-Mart

Desperate times: Shoppers cut back on baby formula

Wal-Mart causing weight loss

Comments

 

Im 24 and been with walmart for 6 yrs. I work at the D.C. so I make about 34K a year. It's enough to live on but the hourly rate at the store sucks. Also the yearly raises suck to. I worked at the store for a year and that whole year my only raise was 10 cents.  I can find that an hour walking around my city. Step your game up walmart we work hard for you so we can live better but it bairly pays the rent.

Now is that fair?

Ive seen the pay stub of an Operations Manager and for what he gets paid all he does is sleep in his office. Now is that fair?

I have never worked at Walmart but shop there as the Return Merchandise Policy is better than the competition. With this being said, we like the low prices but at what cost?

The public needs to know how Walmart treats their employees, lets face it, being judged by your peers is very powerful. The average American or average Canadian needs to determine for themselves, what is more important the lowest prices or better wages, with decent working conditions? Sometimes, when we work together, not necessarily a boycott of Walmart, How about supporting another Store where employees are treated fairly, prices are competitive, just maybe Walmart's Management will realize being a Good Coporate Citizen is important or do they prefer their present management practices to justify their lowest prices. There are many people who can afford to pay slightly more and then, Walmart's Employees could very well be working with their competition, now, I will be shopping elsewhere, How About You?

Most of the people who do the whinning are the ones who do not know how to earn a paycheck. They think everyone gets paid on the 5the of the month when the government pays out. Fair pay for fair work. We always hear from the ones who have their hand out and they really start complaining when no one fills it up!!!. Be responsible, get a job, not a government hand out!! I am tired of people taking my hard earned dollar.Take away the Walmarts and what do you have?? Higher prices and 35% umemployment, wow won't that be nice, no body works everybody gets a check.

It's easy to say you'd find another job if you don't like Wal*Mart's way of doing business.  But to actually go out and find another job, after Wal*Mart has rolled into your town, is a different story.  In most towns  they are the only game there is.  

  And as for the pay being competitive;  they are the company who keeps other companies from paying better wages.  The other companies only pay what they do because Wal*Mart gets away with it.

Walmart is a tremendous blessing -- to the Walton Family and to their slave -driving Chinese counterparts.  Walmart is not a blessing to US workers, suppliers in general, local small businesses and the US welfare system -- which complements and subsidizes Walmart "health insurance programs".   Hey, as a former Director of Finance of Director at Walmart I was made to become the "labor" police instituting arcane rules on how to staff stores to the sole benefit of "Massa Walton".  The mantra was simple: less full-time employees; more part-time employees; disruptive, flexible intra-day schedules that only serve the company and end up increasing travel cost of employees who can list afford extra costs.  No, I was about to rally behind such unfair practices so who got canned from Walmart . . . despite my stellar credentials and well-honed business acumen.  Interestingly, the Walton family does not want us to dwell on the fact that they represent the wealthiest family in the world so they break their fortune into four pieces and have us believe that those shares of stock do not vote as a block.  Cheers to the richest people on earth "The Waltons" from Arkansas.  Someday it will be Hey the Waltons . . . until then buy your goods elsewhere; fight for the rights of the working poor; and pray . . . pray for deliverance from the ever grorwing evil empire.    

Walmart is a tremendous blessing -- to the Walton Family and to their slave -driving Chinese counterparts.  Walmart is not a blessing to US workers, suppliers in general, local small businesses and the US welfare system -- which complements and subsidizes Walmart "health insurance programs".   Hey, as a former Director of Finance of Director at Walmart I was made to become the "labor" police instituting arcane rules on how to staff stores to the sole benefit of "Massa Walton".  The mantra was simple: less full-time employees; more part-time employees; disruptive, flexible intra-day schedules that only serve the company and end up increasing travel cost of employees who can list afford extra costs.  No, I was about to rally behind such unfair practices so who got canned from Walmart . . . despite my stellar credentials and well-honed business acumen.  Interestingly, the Walton family does not want us to dwell on the fact that they represent the wealthiest family in the world so they break their fortune into four pieces and have us believe that those shares of stock do not vote as a block.  Cheers to the richest people on earth "The Waltons" from Arkansas.  Someday it will be Hey the Waltons . . . until then buy your goods elsewhere; fight for the rights of the working poor; and pray . . . pray for deliverance from the ever growing evil empire.    

Wal-mart the mega store does a diservice to its employees with stressful tactics like D- DAYS. You will lose your job if you get too many. Stress of taking misconduct from fellow employees and management, and if you complain to their so called Open Door policy you are a marked employee. I have understanding why someone would stay for 27 years he had to take care of his family even  though he probably hated coming to work everyday. I  know I hated working for Wal-mart but what was there with no skills and a higher education.

Last but not least unfair pricing, the cost of items are higher in the store in my neighborhood and yes I'm African American, so where is the compassion of the big giant that is making all this money but giving us garbage for consumption.

Send a Comment

Comments must be directly related to the blog entry. Comments with offensive language will be deleted. Your e-mail address won't be displayed.

(please, no HTML tags. Web addresses will be hyperlinked):