Shareholders see and hear celebrities, officers and critics

Broadway and action movie star Hugh Jackman emceed a Wal-Mart shareholders meeting in which a party atmosphere highlighting the company’s financial successes and its employee contributions also included a few party crashers calling for more transparency on the board and in international dealings.

Rob Walton, chairman of the Wal-Mart Board of Directors and son of Wal-Mart Stores Inc. co-founders Helen and Sam Walton, welcomed the estimated 14,000 in attendance by saying the 2013 meeting was the first meeting for the company’s second 50 years.

As usual, Wal-Mart gathered an impressive list of celebrities to entertain the crowd. In addition to Jackman, the stage saw Kelly Clarkson, Tom Cruise, Jennifer Hudson, John Legend, Prince Royce and Jahmene Douglas. Douglas is an ASDA Wal-Mart employee who was a finalist on the X-Factor reality show in the United Kingdom.

Before turning the show over to Jackman, Walton said the Wal-Mart culture his father created is “strong and moving forward.” He also told the crowd to not be surprised “if protestors try to disrupt” the event.

Later in the meeting, Walton said the company “continues to investigate” the allegations of bribery and potential violations of the Foreign Corrupt Practices Act. The investigations are ongoing in Mexico, China, Brazil and India. In the first quarter earnings report, the company said it has spent $157 million on matters related to the investigation.

Jackman brought levity to the proceedings by commenting about the 7 a.m. start to the meeting.

“I have never been up this early” in my life, Jackman joked.

Later in the meeting, Wal-Mart officers discussed the company’s business performance among the various sectors. Charles Holley, Walmart executive vice president and chief financial officer, said that at the 2012 shareholders meeting the share price (NYSE: WMT) was around $64. On June 6, the share price closed at $75.63, or more than $30 billion in added value to shareholders since June 2012.

‘HALF A TRILLION’
Holley also noted that total revenue in the most recent fiscal year was $466 billion, and he is confident it will go higher.

“We’re closing in on half a trillion dollars,” Holley said.

Holley also said Wal-Mart is the only company in the Dow 30 to post gains in revenue, income and earnings per share for five consecutive years. In the past five years the company also has returned $62 billion to shareholders.

Holley also announced that the Wal-Mart board had approved another $15 billion share repurchase plan.

12 BILLION TRANSACTIONS
Doug McMillon, president and CEO of Wal-Mart International, said the company had 12 billion transactions with customers in 2012. McMillon said the transactions gives employees 12 billion opportunities to create a good impression with customers.

As did Walton, McMillon also said the company is working to strengthen global compliance measures.

“It’s not what we say, it’s what we do that really matters,” McMillon said.

Rosalind Brewer, president and CEO of Sam’s Club, announced that the club is rolling out an entrepreneur support program in 25 markets. The program is designed to help struggling small business owners in areas such as inventory control and marketing.

Brewer also said Sam’s Club plans to open 15-20 new locations in the next 12 months, and will roll out a “scan and go” mobile application in June in limited markets.

VISION AND VALUES
Wal-Mart Stores Inc. President and CEO Mike Duke talked about the company’s values and vision. He told several stories of how Wal-Mart employees went above and beyond in the jobs, including an assistant store manager who helped a family by finding a way to get a tire replaced at 3 a.m.

In a document prepared prior to the shareholders meeting, Duke outlined the following “strategic focus areas” for the company.
• Making sure the company has the best retail talent at every level of the organization by recruiting, developing and retaining the best associates;

• Delivering on the productivity loop that enables Walmart to operate for less so the company can drive prices even lower for its customers;

• Being even more disciplined about operating expenses and capital spending;

• Investing to serve more customers globally and accelerating the vision of anytime, anywhere access by bringing together best-in-class online, mobile and social capabilities and our more than 10,700 stores; and,

• Benefiting our communities and having a world class compliance organization.

SHAREHOLDER PROPOSALS
During the meeting, there were four shareholder proposals mentioned that are not supported by the company. The non-company proposals provide unions, advocacy groups, pension funds and other organizations a soapbox during the shareholders meeting.

The first proposal was presented by Kalpona Akter, a former garment worker from Bangladesh who is now seeking to improve working conditions in garment factories in the country. Akter’s proposal seeks special shareholder meetings to be allowed, with the focus to be on problems like fires at Bangladeshi garment operations that have killed several hundred workers.

Wal-Mart said it will not sign an accord with European retailers over factory safety in Bangladesh, but has opted to conduct its own inspections at 100% of the factories in that country where goods for the retail giant are made.

Akter alleged that Wal-Mart’s “supply chain is out of control” because company officials were not immediately sure if the garment workers who died made clothes for Wal-Mart stores.

Janet Sparks, a Wal-Mart employee from Louisiana, spoke on behalf of the International Brotherhood of Teamsters for a plan to require Wal-Mart execs to retain a majority of their shares until they retire. She also complained about Wal-Mart CEO Duke receiving a $20 million salary and bonus package in 2012 when bonuses were cut in many stores.

“With all due respect, I have to say, I don’t think that’s right,” Sparks said.

Tim Goodman, a representative from United Kingdom-based Hermes Fund Managers, asked shareholders to approve a plan requiring the Wal-Mart Board Chairman to be independent. He said Hermes is a “critical friend” to Wal-Mart, but that Hermes officials believe the bribery allegations and problems in Bangladesh represent “failures in the culture and the oversight.”

Cambria Allen, representing the United Auto Workers and several pension funds, asked shareholders to approve a plan that would fully disclose what Wal-Mart does to “claw back” pay from executives who violate company policies. She said the transparency would create “concrete consequences for misconduct.”

The four proposals were rejected by shareholders.