H. Lee Scott received a pay package valued at $30.2 million — a 4.6 percent drop — in his final year as president and chief executive officer of Wal-Mart Stores Inc.
This story first appeared in the April 21, 2009 issue of WWD. Subscribe Today.
Scott’s compensation for the fiscal year ended Jan. 31 included salary of $1.5 million, nonequity incentive pay of $5.8 million, stock awards valued at $17.4 million and option awards of $4.4 million, according to a filing with the Securities and Exchange Commission. Stock and option awards are reported based on SEC accounting guidelines. The compensation recorded in these categories was not necessarily realized because of vesting schedules and changes in stock price.
Scott was the highest paid retail executive in 2007, with total compensation of $31.6 million.
The compensation of Scott’s successor, Michael Duke, who was vice chairman before taking over at the start of this fiscal year, fell 7.9 percent to $12.2 million.
In another development, Wal-Mart said Monday that David Glass, a board member and former president and ceo who joined the world’s largest retailer when it had just 123 stores in 1976, will not to seek reelection to the board.
Glass was initially hired as executive vice president of finance and established the first computerized distribution center outside of the retailer’s headquarters in Bentonville, Ark., extending Wal-Mart’s reach beyond its home state.
As vice chairman and chief financial officer in 1982, Glass was instrumental in creating Sam’s Club. He became president in 1984 and succeeded Sam Walton, the company’s founder, as president and ceo in 1988. He retired in 2000.
His tenure was not without controversy, however. A 1992 NBC “Dateline” segment investigated Wal-Mart’s “Made in America” and “Bring It Home to the USA” marketing campaigns, showing footage of children working in Bangladeshi factories making clothes for Wal-Mart.
With Glass’ retirement, Wal-Mart’s board will consist of 15 directors, all of whom will stand for reelection June 5.