Walmart Meeting Concludes Shareholders Week

In 1985, Wal-Mart Stores Inc. held its annual shareholders meeting in Northwest Arkansas.

It was in Bentonville, the media attention was scant and the low-key meeting drew 400 associates from 20 states.

Like the company itself, its signature event has evolved into a behemoth.

Friday morning in Fayetteville, associates from 27 countries were among the more than 14,000 who gathered at the University of Arkansas for the annual meeting, anticipated as much for its star power and entertainment as it is for any actual business proceedings.

Musical entertainers Harry Connick Jr. — who also served as master of ceremonies — Robin Thicke and Pharrell all performed at Bud Walton Arena within the first hour of Friday’s show, and cell-phone selfies were the order of the day throughout the three-plus hour event.

CEO Doug McMillon was a part of two of them within the first 15 minutes.

 “Things have changed, folks,” said Walton heir Rob Walton, the oldest son of Sam and Helen Walton and chairman of the board of the world’s largest company.

Indeed, the retail landscape has changed for Walmart, and it will be up to McMillon — who became the company’s fifth CEO earlier this year — to lead the retail giant moving forward.

In his remarks to shareholders Friday, McMillon reaffirmed Walmart’s mission and outlined new ways the company will serve customers through three core principles.

“First, we will be a customer-driven company. We’ve always said the customer is our boss and we’ll make decisions based on how we can serve them better,” he said. “Second, we will invest in our people. As we change and grow, it will be our associates who will make the difference. Finally, we need to be at the forefront of innovation and technology. We will lead with urgency to get ahead of change.”

The feel-good event was, of course, sprinkled with video testimonials from associates and customers, as well as remarks from several of the company’s top executives including Rosalind Brewer, Bill Simon, David Cheesewright and Neil Ashe.

Besides Pharrell and Thicke, the crowd was entertained by a number of musical guests including Sarah McLachlan, Florida Georgia Line and Aloe Blacc.

As for the business portion of the meeting, both McMillon and Walton were among the 14 board members up for re-election who were confirmed by shareholders.  

Others were: Aida Alvarez, Jim Cash, Roger Corbett, Pamela Craig, Doug Daft, Mike Duke, Timothy Flynn, Marissa Mayer, Greg Penner, Steve Reinemund, Jim Walton and Linda Wolf.

Penner, Rob Walton’s son-in-law, was also appointed vice chairman of the board. Penner, 44, has been a Walmart board member since 2008 and chairs the technology and e-commerce committee. In the new non-management role, Penner will serve as chairman when Walton isn’t present.

Shareholders also approved Ernst & Young LLP as the company’s independent accountant and ratified Proposal No. 3, an advisory vote to approve named executive officer compensation.

Proposals Nos. 4 through 6 — shareholder proposals regarding a request for an independent board chairman, a request for an annual report on recoupment of executive pay and a request for an annual report on lobbying — were all defeated.

Voting results will be released Monday.

About 90 percent of the company’s shareholders were represented in person or by proxy at Friday’s event.

Also at Friday’s meeting, Scott Neal, a senior vice president in the produce, meat and seafood category, was presented with the Sam Walton Entrepreneur of the Year Award. It is the highest award given to a Walmart associate.