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

 

I retired from Wal-Mart after 25 years. I was a single mom and started in 1981 unloading and stocking. In 2 years I became a dept. manager, then 3 years I became an assistant mgr.I was a high school graduate, no college.I was making good money but it was long hours,fast paced, and a lot of stress.I don`t always agree with everything WM says or does but it supported me and my family very well.I left b/c I felt the time was right. I didn`t like the direction upper management was going.My personal opinion they were "retiring" all the executives that were trained by Mr. Sam.I don`t regret my move,yes I`m making less money,but I now have peace of mind and a life.As I get older that means more to me than anything.A lot of things that goes on in the stores in your neighborhoods is not always corporate direction but in store or district management direction.That`s why you`ll have good stores and bad stores.I`ve worked in both.I shop there still,got a lifetime discount card for 20 years of service,how many other retailers do that? I received a letter in the mail from corporate that until 01/01, WM is letting their employees use their discount  for groceries to help them out during the holidays. It may not seem like much, but with the economy like it is today, anything helps.Each WM store does a lot to give back to the communities and help associates out. WM is there to be one of those you love it or you hate it.But there is a lot of positive that does off set the negative.

Don't see a problem with the big shot doing a year with the "common folk". It's good. Yeah.. he's being compensated at his regular rate but it's like having a man on the inside. As long as he's DOING the WORK of the "regular associate", what's the problem? Call it research. Could be a very big eye opener. Put him on the night shift unloading the trucks. Chew his ass for taking too long a break. As long as he is treated as an associate.. Heck, I'd like to hear monthly progress reports from him..

"Move some of the fat cats out of their ivory towers for a few months and let see how they do making $9.00 a hour"

Rich, I have an idea for you. Why dont you and everyone like flip your mind set. Rather than bringing the highest common denominator down, why dont we raise the lowest denominator up? Most people have worked low paying jobs at some point in their lives but the smart ones figured out a way to WORK their way up. They earned the right to make more money through a track record of proven results. There seems to be a crazy idea out there that effort means something. Wake up, effort is only part of the equation. The rest of the equation is results, passion, motivation, going above and beyond. This is what should earn a person better money and a better job not unions, not envy, and not crying about your lot in life. Only when all of us are required to stand on our own two feet will we reclaim the former glory of our great nation.

I hear a LOT of people that need to call 1.800.WAA.AAAA

SICK & TIRED.. Amen

Wake up people, if the unions get invloved in all businesses, we will have more of the Big 3 automakers situations and that means never ending bailouts. The Union leaders have been cowards lying in the bushes, they need to step up and demonstrate leadership and work to be part of the solution and not one of the big problems facing our econmonic recovery today. In closing, both business management and unions need to find a common ground that makes common sense(there's a new concept).

He's stepping down to associate? Then why doesn't Walmart pay him the same as the other associates? What a joke !!!

Unions... Organized Labor = Organized Crime...

Unions are outdated.. criminal extortionists

Remember  its easier to get a camel thru the eye of a needle...THAN A RICH MAN INTO HEAVEN....GO AHEAD KEEP YOU RICHES AND SEE WHERE YO SPEND ETERNITY....

The funny thing about that Buck, is that values and morals are either there or there not. The rich and the poor alike have good people and bad people.

Besides (not to turn this into a religious forum) The way to the father is through the son. Not deeds, not intention, not charity or anything else but a belief in the fact that Jesus came to earth as a man and shed his blood for the redemption of our sins.

Nice try though!!!

If you can develop a skill or service that other people want, need or desire, work hard, acheive the desired results, go above and beyond, and stay true to your moral compass then you can be a successful person. Or..... you can cry about how unfair life is, waste your time being bitter about the "man" holding you back, rely on a union for your future, etc., and see where you spend your life.

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):