Walmart grabbed some attention with its mid-week announcement that it will be resizing and redesigning its board of directors some. Going forward, Walmart’s board with have 12 members as opposed to 15, in an attempt to more closely resemble other retail boards nationally. The change is also designed to help Walmart respond more quickly as market conditions vary.
The changes will see 67-year-old Jim Walton retire from the board. Walton is the youngest son of founder Sam Walton and has served for 11 years. Steuart Walton has reportedly been nominated to fill his father’s place.
Also stepping down are Aida Alvarez, Roger Corbett and Mike Duke (Walmart’s CEO from 2009-2014).
The move comes as Walmart has been hit with hard times — profit declined by double digits last year while entry level wages saw a big increase.
“The changes we are making are designed to maximize our effectiveness as we adapt to ever-evolving customer requirements,” James Cash, lead independent director, said in the statement.
Alvaraz and Corbett are both stepping down after a decade – a standard term on the board. Duke saying goodbye two years out of the CEO job is also in line with historical practice.
Current CEO Doug McMillon’s total comp was also announced this week, an all-in value of $19.8 million in the year ending Jan. 31, up from $19.4 million in 2014.
Walmart has shown some renewed strength in core U.S. operations, with existing store sales edging up 1 percent (excluding fuel).
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