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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:

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

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Wal-Mart causing weight loss

Comments

 

"Quitting while you are ahead is not quitting." The company is moving in the right direction against stiff competition and Scott has fought long and hard to ensure the company's survival, he is passing the reins to an accomplished, established executive with the energy to drive the company forward as he retains a position to provide strategic advice to his successor. Smart man, very smart.

I would love to be an associate for walmart, as I do shop there; in fact I could probably improve their stores.  How could you turn down such a lucrative offer as that.  Over one million dollars a year to wear blue jeans to work, while people like myself bust their butts to have it all.  I'm not complaining by any means, my motto is if I'm not dead or in a bed (dying, sick, etc,...), God knows I cannot complain.  I am truly blessed, but some of these corporate fools should really learn what is important in their lives.

I was in a Wal=Mart today in the Los Angeles area.  The apparel area was a dismal.  I found nothing that I needed to buy.  Later, I went to Target where I found everything and was in and out in 10 minutes.  No wonder Wal-Mart can't compete in urban area.  Their apparel area has bee terrible since inception.

Cowards write columns full of snide commentaries and silly statements. Smart and secure executives know when to turn the reins over to younger blood with the energy of youth and a slightly different perspective to take a company to the next level. Wal-Mart is the largest retailer on the planet for a reason - they deliver what the customer wants at a price he or she can afford in a clean and comfortable environment. Naysayers are simply chewing last harvest's sour grapes.

Throw this overpaid bum out! Put another one in his place.  Welcome to our great American dream gone bad at the exploited expense of the average "middle class" working person.  The story is the same and very relative within every major corporation in the world.  A greedy board (or family), a ruthless director and purchasing department, carrots on a stick for other middle manager type ruthless bonused associates, and an army of us desperate entry level low paid wanabees willing to work anytime, anywhere for anything, willing to do whatever their told.  We don't need unions, we just need self esteem enough to all stay home for one day from work to get a well deserved raise and some more benefits.  I suggest this Friday would work.

I said it once and I'll say it again, no one is forced to work at walmart.  If they don't like, they can find another job.  Unless you own a business of some sort, who are you to complain about what a company does when after all, the only people you take care of is your own family, as where walmart provides for lots of people.  You would complain if it were illegals working at this awful place.  I think to some degree, McCain was right, America is a nation of whiners.

There they go again blaming "big business" for moving jobs overseas.  Who can blame them (Big Biz)  the U.S. has the 2nd highest business tax rates in the world.  Moreover, they do not have to deal with unions or the environmentalists.  And now with O blameyee it is only going to get worse.  Since June when O blameyee

was the anoited one the stock market has lost 40% of its value and it is going down faster than the Titanic ever dreamed.  So all you Union freaks and environmentalist's keep spinning your crap and pretty soon there won't be ANY jobs in this country.  I am sure that is when you will be fully satisfied.

A job is not a right - You people are the reason America will never be strong again.  If congress likes open ballot voting for the rest of us why do they not use them?  What's good for the goose.  Look what the unions have done to our auto industry.  Wake up people - If ypu don't like Wal-mart don't shop there - don't work there.  It is that easy.  Get an education, work hard, be independent, and never quit.  It's all about your choices.

Dave's quote:

"I think that if this CEO is working as a regular employee, he should get regular pay like everyone else.  He needs to know how his employees have to live ao $20,000 per year.  I will bet he wouldn't last a month.  However, being paid 1.1 million is a crime anyway.  There is no one that is worth that much. "

Wow - with this mindset, you'll be a merely average employee for someone who is working hard to create something great in business... Sounds to me like you are sucking your thumb over the fact that there are people out there that are doing well, while you whine about anyone being paid a million dollars a year being 'not worth that much'.

Remember your own words as you worship your favorite multi-millionaire NFL player, MLB player, music star, actor, etc., by supporting them at a stadium, arena or theater near you -

Evidently, you believe that there is a certain dollar amount that a person should be allowed to make - if this is, in fact, your line of reasoning, I would suggest that you pick from a great assortment of countries on the planet that also cater to your belief. Most are oppressed or socialist/Communist in their philosophies... you'll fit in well...

Their SO EVIL!!!  And yet their sales grow and they continue to have people that want to work there....  Guess the market speaks.

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