Doug McMillon

Douglas McMillon, president and chief executive officer of Wal-Mart Stores Inc., saw his pay decline nearly a quarter in his first year on the job.

Douglas McMillon, president and chief executive officer of Wal-Mart Stores Inc., saw his pay decline nearly a quarter in his first year on the job.

This story first appeared in the April 23, 2015 issue of WWD. Subscribe Today.

According to Wal-Mart’s definitive proxy, filed with the Securities and Exchange Commission Wednesday, McMillon earned $19.4 million last year, 24.2 percent below the $25.6 million earned in 2013, his final year as ceo of the company’s international operations.

The cash component of his pay doubled, to $4.1 million, as his salary increased 25.8 percent to $1.2 million from $954,000 and his bonus, or nonequity incentive plan compensation, nearly tripled to $2.9 million from $1 million.

But after receiving $23 million in stock awards in 2013 as he prepared to assume the role of ceo, those awards dropped 36.6 percent last year to $14.5 million. The SEC requires that stock awards be reported at grant date fair value. Amounts recognized by the executive may vary based on fluctuation in stock prices and vesting schedules, among other factors.

Change in pension value and nonqualified deferred compensation, an actuarial measure, declined 4.7 percent to $322,000 from $338,000, while other compensation increased 54.9 percent to $394,000 from $254,000.

Wal-Mart said in its proxy that cash bonuses, primarily based on operating income and sales performance, “were significantly below target,” with McMillon as ceo receiving a payout equal to about 75 percent of the target amount. Stock award payments were also well beneath target levels, ranging from 67 to 76 percent of target amount, based on sales and return-on-investment metrics.

In his first year after succeeding McMillon as ceo of Wal-Mart International, David Cheesewright earned $10.7 million. Gregory Foran, who succeeded Bill Simon as ceo of Wal-Mart U.S. in July, earned $19.5 million, including a $500,000 one-time bonus for his promotion and $15.8 million in stock awards.

Their previous compensation levels weren’t provided by Wal-Mart.