Walmart 2016 Annual Report Download - page 16

T he past year has been a period of transition for Walmart as
we make strategic investments to position the company for
sustainable growth. Management took bold steps focused on
winning with customers by increasing wages and training for
U.S. store associates, investing in the technology powering our
websites and apps, and expanding our e-commerce fulfillment
capabilities. Walmart’s Board of Directors fully supports these
investments in people and technology as they will strengthen
the company’s competitive position both now and in the future.
We’ve challenged management to increase the pace of change
even further, and we’re tracking comp sales, customer satisfaction
scores and growth in gross merchandise value to monitor
progress on delivering this strategy.
Walmart’s Board also experienced changes this past year, and
none was more notable than the retirement of my father-in-law,
Rob Walton, as Chairman. We are fortunate that Rob continues
to serve on our Board, offering his expertise and unequaled
perspective derived from his more than two decades of effective
leadership as Chairman. I’m honored to succeed him as Chairman
and excited to lead a Board that is deeply committed to our
company’s success, to strong governance and to the interests of
Walmart’s shareholders. The members of our Board represent an
exceptional array of talent, diversity and expertise in retail and a
broad range of other industries and disciplines. We are committed
to an independent Board, and Dr. James Cash is our Lead
Independent Director.
Our Board members are dedicated in their service to shareholders,
demonstrated by their attendance at 98 percent of Board and
committee meetings last year.
During this period of change, Board refreshment and succession
planning remain top of mind. The Board is committed to
continuous improvement, and we have adapted the way we
operate to maximize our effectiveness. We’re reducing the Board’s
size while maintaining its independence, changing our Board
committee composition and ensuring that Walmart’s strategic
priorities are a key focus. Shareholders benefit as we leverage the
Board’s strategic expertise to guide Walmart’s path forward.
The past year has also brought an unprecedented level of engagement
with Walmart shareholders. Members of management have actively
engaged with the majority of our largest institutional shareholders
to hear their perspectives on Walmart’s strategy, Board structure and
compensation programs. I participated in several of those meetings,
as did Dr. Cash. Shareholders told us that we’re focused on the right
strategy to deliver a seamless shopping experience for customers.
Shareholders value the quality and diversity of our director skill sets
and believe that the Board is a strategic asset. And, most shareholders
felt our executive compensation program was appropriately
performance-based and aligned with Walmart’s strategy and
shareholder interests. The views of shareholders have always been
important to us, and we continually strive to improve our level of
disclosure and transparency with shareholders. Thank you for the
feedback you provided this past year.
As we look ahead, the Board is confident that Walmart’s strategy
is the right one, our governance processes are strong and
management is fully aligned with an actionable plan for success.
Sincerely,
Delivering strong
governance
We’ve continued to improve our
proxy statement disclosure. As you
review the proxy, we hope you find
it informative and we ask you to
vote your shares.
GREG PENNER
Chairman of the Board of Directors
Wal-Mart Stores, Inc.
14 2016 Annual Report