Wal-Mart Suspends Coughlin?s Benefits

Wal-Mart Stores Inc. said it suspended compensation benefits to former Vice Chairman Thomas Coughlin, who resigned from the retailer’s board in March after the company found what it said was a pattern of expense-account abuses and false invoices to obtain reimbursements.

According to the company’s proxy filing March 15 with the Securities and Exchange Commission, Wal-Mart suspended pending further review 302,503 stock options that are a part of Coughlin’s direct holdings.

The company also suspended all the benefits under his retirement agreement, which included $1 million in salary for the next two years and the vesting of 186,407 restricted shares.

Coughlin retired as vice chairman of Wal-Mart in January and was expected to serve on the board until June. On March 25, the Wal-Mart board asked him to resign after the retailer said it found as much as $500,000 in questionable payments. Wal-Mart referred the matter to the Bob Balfe, U.S. attorney for the Western District of Arkansas, who is conducting an investigation.

Through his lawyers, Coughlin has denied any improprieties. According to The Wall Street Journal, people familiar with the matter say Coughlin has claimed that the questioned transactions were intended to fund a secret campaign to gather intelligence about union organizing at Wal-Mart. Wal-Mart says it has no evidence Coughlin was paying for union information.

Coughlin cashed in stock options valued at $15 million at the end of 2004, according to federal filings. He holds 828,742 Wal-Mart shares.