Walmart 2011 Annual Report Download - page 15

Walmart 2011 Annual Report 13
Eective corporate governance
benets shareholders
Walmart is a purpose-driven organization, helping customers
save money so they can live better. Our commitment to this
mission and to enhancing shareholder value drives our
associates around the world and lays the groundwork for us
to build the Next Generation Walmart. It is gratifying to me
and to our entire Board that we uphold the same values and
principles that guided my Dad as he built this company.
Walmart associates live those values every day. I like to get out
and visit with our associates, and when I do I am proud to see
their commitment when I visit stores or clubs. I appreciate
watching the heartfelt oer of a greeting and a shopping cart
to a mother with small children. A small restaurant owner
shared his enthusiasm with me recently about the savings
and value he nds at Sam’s Club. It is exciting that through
our growth strategy we have so many more opportunities to
share the Walmart experience. In fact, when our Board met
in China late last year, we spent two days visiting our stores
and several competitors. We had lunch with a number of
hourly Walmart China associates and learned more about
their lives and how we can better serve customers. These
visits reinforced the Board’s recommendation that our
international team accelerate growth in China, as well as
our other emerging markets.
Strong governance framework. Our corporate governance
practices are rooted in these same values and principles
that Dad instilled in Walmart. This corporate governance
framework has never been stronger. We’ve maintained a
separate Chairman and CEO leadership structure since 1988
to enhance the oversight of our leadership team and facilitate
management development.
Our Board remains committed to corporate governance
processes that ensure a balance between proper oversight
and the right level of control, and we regularly review these
processes. For example, our Board recently changed the
charter to formalize the Compensation, Nominating and
Governance Committee’s oversight for sustainability and
corporate responsibility. This committee also regularly
reviews our executive compensation programs to ensure
that compensation is not only competitive, but also
remains closely tied to performance that is aligned with
shareholder value.
Walmart Board members represent varied experiences
covering retail, technology, nancial, brand management,
strategic and global expertise. We encourage frank discussions
and debate, gain consensus and provide guidance to
management on strategies and plans. Mike Duke’s leadership
team is fully aware that each Board conversation includes
honest feedback and provocative questions, based on the
best interests of the company and our shareholders.
As Chairman, I am very proud that through these examples
and countless others, our corporate governance reects
Walmart’s culture and rich history. My Dad left behind one
of the greatest gifts, a culture that ensures we always strive to
do our best for customers and shareholders. We often credit
Dad with creating this great company, as well as driving
innovation in operations and merchandising. What he really
did was create an organization founded on the principles
of the utmost integrity behind our decisions...that just
happened to be a retail company. It’s an organization that is
capable of continuing to accomplish great things.
One of my Dad’s most popular quotes is “To succeed, stay
out in front of change.” Dad forged a framework that allows
us to do that. And in doing so, we challenge ourselves to
improve constantly for our customers, our shareholders
and our associates.
S. Robson Walton
Chairman of the Board of Directors
Wal-Mart Stores, Inc.