Wal-Mart chief exec’s pay reported as $5.23 million
Posted on Saturday, April 15, 2006
URL: http://www.nwanews.com/adg/News/151829/
Wal-Mart Chief Executive Officer H. Lee Scott’s salary and bonus pay for the year ending Jan. 31, 2006 totaled $ 5. 23 million, according to the proxy statement filed Friday with the U. S. Securities and Exchange Commission.
His total compensation, excluding restricted stock awards, was $ 15. 7 million. In the year ending Jan. 31, 2005, Scott’s salary and bonus were $ 5. 36 million and his total compensation was $ 17. 5 million excluding restricted stock awards.
Wal-Mart spokesman John Simley said 459, 348 restricted shares issued to Scott will vest in 2009 and 2011 depending on Scott meeting performance goals. Those goals include hiring more minorities for managerial and executive jobs. He received $ 6. 33 million in restricted stock in 2005.
Scott’s compensation included $ 104, 051 for personal use of the company plane.
Scott received a $ 3. 94 million bonus although Wal-Mart Stores Inc. saw its slowest earnings growth since 2001. The world’s biggest retailer had a 9. 4 percent increase in revenue last year.
Scott is taking May off for vacation. It is the first time he has taken a month off since being appointed chief executive in 2000. Scott spent much of his time last year battling Bentonville-based Wal-Mart’s critics, particularly those who attacked Wal-Mart’s health insurance policies and pay for workers.
Scott has also spent time convincing his workers, politicians and the media that Wal-Mart is instituting changes. He announced environmental initiatives last October aimed at making Wal-Mart fuel-efficient and more adept at conservation.
Wal-Mart Stores Inc. also announced Friday it had nominated Aida Alvarez, former administrator of the U. S. Small Business Administration, and retired Harvard University Business School professor James Cash Jr. to its board of directors. The election will be at the company’s annual shareholder meeting June 2.
The company said current board members Jose Villarreal, J. Paul Reason and John D. Opie will not stand for re-election.
Alvarez was administrator of the U. S. Small Business Administration under President Clinton from 1997 to 2001. Cash served as chairman of Harvard’s MBA program. He serves as a director of The Chubb Corp., General Electric Co., Phase Forward Inc. and Microsoft Corp.
“Paul and Jose are rotating off as part of our normal governance guidelines relating to the service of our outside directors,” Chairman of the Board Rob Walton said in a statement. “John chose not to stand for reelection in order to focus his attention on his duties as lead director of Delphi.”