Ahead of Bud Walton Party, Walmart Shareholders Reject 3 Proposals

Doug McMillon, president and CEO of Wal-Mart Stores Inc., has aggressively pushed the discount retailer into a new era emphasizing online shopping. Many of Wal-Mart’s moves in 2017 took direct aim at its chief competitor, Amazon.

Shareholders of Walmart Inc. of Bentonville rejected three proposals at the decidedly low-key company business meeting Wednesday at the Hammons Convention Center in Rogers.

The retail giant decided this year to hold its business meeting separately from the celebrity-laden entertainment show that has been an annual tradition. The celebrity showcase will still be held Friday at Bud Walton Arena on the campus of the University of Arkansas in Fayetteville.

Shareholders approved, as expected, the company’s 11-person board of directors, the compensation of executive officers in an advisory vote and the approval or Ernst & Young LLP as Walmart’s independent auditor. 

Shareholders rejected — the company said it would release vote totals Friday — proposals that called on Walmart to elect an independent chairman of the board, report on any pay gap among racial and ethnic employees and to contribute as much to employees as it plans for investors.

Walmart Chairman Greg Penner is the son-in-law of Rob Walton. Walmart also announced a $20 billion stock buyback program last year that critics said would be better used to raise wages for its employees.

On Wednesday, Walmart CEO Doug McMillon gave a short stump speech praising the company’s successes and goals for the future, which he said included becoming more digital, more efficient and more trusted.

“We want our customers to feel good about shopping with us,” said McMillon, adding that he wanted investors and employees to also feed good about the association.

“We had an exciting year,” McMillon said. “We’re moving faster, getting stronger, and we have good momentum across many parts of the business. This is a dynamic time to be in retail, and opportunities are emerging to serve customers in new ways so we are moving with speed to bring them to light.”

Walmart agreed in early May to buy 77 percent of India online retailer Flipkart for $16 billion. McMillon said the acquisition was part of the company’s “strategic and thoughtful” management of its portfolio. He said the company is balancing long-term growth with present-day success.

“We are making big changes, and they are the right changes to deliver long-term growth,” McMillon said.