Walmart 2015 Annual Report Download - page 16

14 2015 Annual Report
Across our markets, Walmart is in a period
of rapid change, and our Board of Directors
is highly engaged in overseeing the
development and execution of Walmart’s
enterprise strategy. Under Doug’s leader-
ship, management is focused on driving
long-term growth and profitability. We’re
investing in our associates and e-commerce,
and integrating our e-commerce offering
with our stores and clubs to exceed
customers’ expectations. I’m proud that
the Board fully supported a $1 billion
investment in our U.S. store and club hourly
associates to increase pay and provide a
pathway to greater career opportunities.
We also endorsed a more than $300 million
incremental investment in e-commerce to
continue development of fulfillment and
technology capabilities in fiscal 2016.
These commitments are expected to
improve the store and digital experience
for our customers.
Walmart has an exceptional Board of
Directors comprised of a diverse mix of
highly qualified members committed to
upholding strong governance standards
and demonstrating integrity in all activi-
ties. Our Board continually reviews our
composition, leadership structure, and our
way of working to ensure that we’re fully
leveraging these talented individuals. Our
Board’s diversity is broad – from ethnicity
and gender, to business experience and
tenure. The median length of service on
our Board is approximately 6½ years. This
includes a healthy mix of directors with
fresh perspectives who joined our Board
over the past few years, combined with
longer-serving directors with expertise in
our business and broader retail acumen.
Because change is inevitable, succession
planning is one of our key responsibilities.
Greg Penner, who has served on the
Board since 2008, became the Board’s
Vice Chairman this past year, and he has
taken a more active leadership role in
Board and management interactions
focused on strategy, management devel-
opment and Board processes. As part of
our standard refreshment, we have a rig-
orous Board candidate evaluation process
to ensure that we maintain the right skill
sets for our growing business. Two board
additions in 2014, Kevin Systrom and Tom
Horton, underscore the benefits of this
approach and demonstrate how we’re
strengthening our oversight to keep pace
with the changing retail dynamics.
Committed to Board independence
Our Board is dedicated and challenges
management to grow Walmart in the best
interest of our stakeholders. In fact, most
directors attended all of our Board and
committee meetings last year, with the
overall meeting attendance for the year
being 98 percent. The Walton family has
a passion to see the company succeed,
and we’re proud to have representation on
Walmart’s Board. But, we also recognize the
importance of having an independent board
with diverse experiences and viewpoints.
Today, the majority of our board members
are independent. Dr. James Cash serves as
our Lead Independent Director, adding
exceptional value to our governance
processes. And, we’ve had separate
Chairman and CEO roles since 1988. This
structure allows our management team
to focus on long-term value creation for
all shareholders and avoids the tempta-
tion to respond to short-term pressure
that’s not best for our business.
Listening to our shareholders
All of us believe it’s important for the
company to hear from shareholders and
respond accordingly. Over the past year,
management engaged in a proactive out-
reach with many of our largest shareholders
to discuss Walmart’s strategy, governance
and compensation practices, as well as
our environmental and social initiatives.
These meetings were insightful, and the
feedback was shared with the Board. We’ll
continue to evaluate and act upon the rec-
ommendations that the Board feels are in
the best interest of all of our shareholders.
This is an exciting time for Walmart and
retail in general. Our future is bright for our
customers, associates and shareholders.
Despite all the change that’s occurring,
Walmart remains true to delivering on the
purpose we’ve always had, to save people
money so they can live better. And, we’re
committed to growing the company in
an ethical and compliant way, endeavor-
ing to always do the right thing.
We’re delivering
strong governance
for shareholders.
S. Robson Walton
Chairman of the Board of Directors
Wal-Mart Stores, Inc.