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We recently wrapped up our Arkansas Executive of the Year Awards program, and each year we ask the honorees the same question: What CEO do you look up to?
One name seems to appear time and again, Walmart CEO Doug McMillon.
So it was a significant coincidence when McMillon announced his retirement the day after our Executive of the Year ceremony.
Ted and Amanda Herget, the owners of Gearhead Outfitters who were named the Small Private Company Executives of the Year, both said they drew inspiration from McMillon, who shares their Jonesboro roots.
McMillon’s story of starting as an hourly worker at Walmart is known well enough that it doesn’t need to be repeated here.
Instead, I want to highlight a remarkably successful 12-year run leading the world’s largest retailer, marked by achievement rather than lofty pronouncements or a reach for celebrity status.
Walmart’s stock price has increased by more than 300% since McMillon took over in 2014, outperforming the S&P 500, and the company’s market value has increased by $560 billion.
When he stepped in as CEO, Walmart was a constant target for its stagnant wages, and many investors expected Amazon to leave the brick-and-mortar giant in the dust. McMillon steadily tackled both issues.
A revamped benefits package improved retention and competitiveness in the talent marketplace.
And a handful of key acquisitions and investments in technology enabled the traditional retailer to transform into an e-commerce leader itself.
McMillon’s persistence and long-term approach made this happen, but he is quick to credit Walmart’s board with giving him the necessary leeway.
These investments — which have undoubtedly paid off — came at a cost, with dips in margin frustrating Wall Street. Still, McMillon and his team have been able to look past the next quarterly earnings call in a way that has become increasingly uncommon in U.S. capital markets.
It’s also hard to express how difficult it is to make these types of paradigm shifts at a legacy retailer of Walmart’s size, where inertia alone can kill good ideas in their infancy.
McMillon’s approach has been understated in comparison to many of today’s high-profile CEOs, but he does make himself available and the close listener can gain meaningful insights.
In an excellent interview with the Stanford Graduate School of Business earlier this year, McMillon reflected on his own growth. At the beginning of his tenure, he said, he took too long to make decisions. As he gained confidence, that changed, a shift that was especially important during the COVID pandemic.
He sees his role as positioning the company for success 50 years down the road.
It feels inevitable that Amazon will overtake Walmart in the next few years, but who knows? I do know it would have come sooner if not for one retiring CEO admired by top executives in our state.
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