Walmart 2005 Annual Report Download - page 17

WAL-MART 2005 ANNUAL REPORT 15
What is the thinking behind the
company’s charitable donations?
My mother and dad (Helen and Sam Walton) always
maintained that each store knew what was most important
in its own community, and their philosophy endures today.
Communities support us, and we want to support them
through both donations and personal involvement. This is
why 90 percent of our contributions are directed at the local
level. We also address needs on a national level. For exam-
ple, we are major supporters on a national scale of children’s
hospitals, literacy, teachers, our troops, the United Way, and
other key causes and groups. One of our biggest challenges
and priorities in this area is to make sure that our cus-
tomers and community leaders know what a good citizen
Wal-Mart is. I have no doubt that Wal-Mart’s level of giving
and the way it is directed reflects my parents’ priorities.
How do you feel about the current
management team?
For those of us who literally grew up in the store – and
there are lots of associates who can join me in making that
statement – it is gratifying to see dedicated men and women
leading our company who not only have exceptional busi-
ness skills, but who also understand what makes Wal-Mart,
Wal-Mart. They know that always putting the customer first;
always understanding how important associates are; and
always remaining open to change are the reasons for our
success. They embrace these strengths and build on them.
It’s also exciting to see Wal-Mart really come into its
own as a global company and to see global talent develop
and be shared. It’s great to have people like Eduardo
Castro-Wright, who is Executive Vice President and Chief
Operating Officer for our Wal-Mart Stores Division. Formerly,
he was our President and Chief Executive Officer in Mexico
and now he is running our largest business unit. We also
have “home grown” talents like Linda Dillman, Chief
Information Officer for our Information Systems Division,
who worked her way up in the company by learning and
excelling in various technology roles. She has been recog-
nized as one of the Top 50 “Most Powerful Women” by
Fortune, is a respected leader and is driving our Radio
Frequency Identification (RFID) initiatives. There are many
stories of associates advancing within our ranks and it says
a lot about the outstanding career opportunities available
today at Wal-Mart.
Could you please comment on Wal-Mart’s
priorities as the company continues to grow?
Seeing our people succeed is first and foremost. When they
succeed, our company succeeds. And, our people succeed
when they embrace my dad’s vision – to improve the lives
of everyday people by making everyday things more
affordable. As long as we’re working for the customer,
we’ll grow and prosper. One way we can do a better job
for our customers is to make sure our associate profile
represents our customer base, so diversity is an impor-
tant priority. I am pleased to report that every one of
our officers met their mentoring and diversity good
faith effort goals this year and only one officer missed
meeting their placement goals. That’s excellent progress
and it reflects how our company operates with standards
and concern for people, which allows us to have an
impact that goes beyond bottom-line results.
The stock price has been relatively flat
for the past five years. Why doesn’t the
stock react to the company’s consistent
reports of record sales and earnings?
Over the long term, our stock price will track our
earnings performance. However, over the short term,
numerous other factors, like stock market trends, eco-
nomic factors, interest rates and employment levels, all
may affect the stock price. It is frustrating that over the
last five years, our sales have gone up almost 83 percent
and our earnings have grown almost 100 percent, but
our stock price hasn’t moved. We have had consistent
sales and earnings growth, and if we continue to focus
on serving our customers and taking care of our asso-
ciates, the stock should reach its appropriate valuation.
What is the Walton family’s perspective
on Wal-Mart today?
First, we know and appreciate that Dad’s emphasis
on integrity remains a foundation of the Wal-Mart
culture. We have all seen how important this is today.
We also are pleased with the ongoing development of
the Wal-Mart leadership team. The growth of Wal-Mart
just since Dad passed away in 1992 has been most
impressive. At the same time, we recognize that our
size and success have brought unusual challenges,
particularly from an external standpoint. However,
as we step back and look at Wal-Mart through a wide
lens, the Walton family has never felt better about the
company and our future.
If you would like to send a message to Rob Walton or a member of
the board, please use the e-mail addresses listed below:
Rob Walton: [email protected]
An individual board member: (director’s full name)@wal-mart.com
The full board: [email protected]
Only independent directors: [email protected]