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Wal-Mart CEO to become regular 'associate'

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

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Wal-Mart causing weight loss

Comments

 

What a great company. Give the employees holiday pay, but cut their hours that week so the holiday pay will make up for the lost hourly wages. You people call that a great company. Then raise the store expectancy rate so that there is no possible way for it to make bonus for the employees. I think that the time of taking care of your employee's has gone by the wayside. Why should the employee's care about the company.

If anyone at working at WMT deserves better wages go to .... hmmmm ... Kmart, Target?  Sorry same wages.  A real job outside retail ... I'm sorry ... you're not qualified, or you have a poor work history, or no initiative to go get a better job.  Quit whining ... no one owes anyone anything.  If there are better jobs out there for those working at WMT, guess what ... they would quit WMT and go to work elsewhere.  If you want to "make" WMT pay more, we can turn the country into the United Socialist States of America.  The free market has only worked for the last 3 centuries or so, and the Soviet Union couldn't manage 75 years ... but what the heck, maybe we can do it better ...

I don't understand what you people are crying about? What other retailer is taking better care of there associates! Let's see K-Mart nope the're 2 steps away from being out of buisness. Target what do they do differently to take care of there associates. Or I guess as you'll say employees. Best Buy they were just downgraded to a B financially. There's a reson Wal-Mart continues to stay on top as much as some don't want that to be. They change with the times. And right now if you not. Then as you can see you might not be around for long!

I like the idea of the  greeters at Walmart. Usually it's pretty old people or folks in wheelchairs. I always think too bad that people at their age still have to work, would be nice if they could enjoy their retirement. And then my next thought is how great that Walmart provide jobs  for these people. There's not many other places where these people would have an opportunity. I can't believe some of the criticism  Walmart or their executives are getting. If you don't like them because its " corporate " America or you don't like them because little mom and pop stores can't compete with them that's ok ,stick to your principles and don't shop there, that's fine. The vast majority  can't afford to  be thieves of their own wallets.

Here are my thoughts. First and formost Wal.Mart should start selling items made in the good old USA, this would help with the unemployment problem. Most of the items made in China are not even worth the price that Wal-Mart sells them at.

Second, I have no problem with Spanish speaking employees in their stores, but I do have a problem when they can not understand English when you ask for help. I also do not like the fact that the employees converse in Spanish with other emplyees while they are waiting on you.

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LUE --

Did your nephew go find another job?  If he didn't, shame on him.

Sorry, but the reality of retail is that it is staffed by a mix of full time and part time employees to meet the actual shopping peaks.  And every store manager, like the manager or owner of any business, has to manage to a budget  of hours.  He or she can't just simply add hours because someone wants them.  If you were running a business, would you just let employees work whatever hours they wanted -- and you pay whatever amount they worked?

Of course not.  I note, you didn't say that they ever cut his hours.  Only that they kept him at the same level throughout.  And if he was a great employee, they would have increased his hours once a slot opened and made him benefit eligible.  All stores are looking for great employees to fill the core spots.  But, honestly, everyone else is pretty fungible, and they expect to turnover employees.

If WalMart sold kids clothes made in the USA, they would be ... Baby Guess or Baby Gap, and you would pay $45 for a pair of jeans.  Which one of you "buy American" folks is willing to pay that?  Didn't think so ...  

i work in a retirement community and several of the retirees choose to work at walmart as greeters because they can not stand to sit home all day and waste away others choose to work at libraries, goodwill stores. And these are people that pay 2800-3000.00 to live in a retirement community. they want to work they don't have to.

Jen, even if they do it to avoid boredom...where else can they get a paying  job?? Not very many places that's for sure

So true, and they will even give you a day's work unlike many younger people.

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