Wal-Mart Annual Meeting Rejects Shareholder Initiatives

Associated Press • June 3, 2005

By Chuck Bartels,
Associated Press Writer
Fayetteville, Ark.

A feminist leader drew rounds of applause from Wal-Mart shareholders Friday as she chided company managers for having only two women on its 14-member board. In the end, though, the shareholders rejected the initiatives she backed.

Martha Burk, chairwoman of the National Council of Women's Organizations, had said Wal-Mart should give a breakdown, by race and gender, on how stock options are distributed.

"We want to be sure there is not an equity glass ceiling in our company. Wal-Mart has the opportunity to break new ground in shareholder information," said Burk, who identified herself as a second-generation shareholder in Wal-Mart Stores Inc.

Wal-Mart chief executive Lee Scott drew louder applause when he closed the meeting with a pledge that the company would continue to battle its critics. But Scott also cautioned that Wal-Mart's opponents are well-financed - he cited a $25 million anti-Wal-Mart effort - and told workers that they are being watched.

"We're the focus of one of the most organized, most sophisticated, most expensive corporate campaigns ever launched against a single company," Scott said, noting that labor unions and other groups are involved in the efforts.

"That means we'll continue to be judged by a higher standard than any other company. That's just the way it is," Scott said. "And that makes it more important than ever that we focus on doing the right things and doing things right, every time."

Burk's proposal and seven others were voted down by shareholders, Chairman Rob Walton announced at meeting's end. Other proposals pending before shareholders include items on how Wal-Mart's board is selected, environmental sustainability and other issues.

Shares of the company fell 31 cents to $47.91 in midday trading on the New York Stock Exchange, where they've traded in a 52-week range of $46.20 to $57.89.

Wal-Mart has 5,350 total stores, including 1,808 Supercenters, 1,293 Wal-Mart discount stores, 554 Sam's Club warehouse stores and 89 Neighborhood Market grocery stores. The company has 1,606 international stores and more than 1.6 million workers in the United States and abroad. The company had revenues of $288 billion last fiscal year.

The company also has stores in Argentina, Brazil, Canada, China, Germany, Great Britain, Mexico, and South Korea. Wal-Mart also counts its Puerto Rico stores in its international division.

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