Duke named CEO of Wal-Mart Lee Scott to retire; Castro-Wright named vice chairman
Posted on Saturday, November 22, 2008
BENTONVILLE — As the thousands of employees who work at the Wal-Mart Home Office sat down to their desks Friday morning, they were hit with big news — an e-mail from Rob Walton, chairman of the board of directors, explaining Mike Duke, 58, will succeed Lee Scott as president and corporate executive officer, effective Feb. 1.
“ I want you to be among the first to know that yesterday our board of directors elected Mike Duke to be our new CEO, effective Feb. 1, 2009, succeeding Lee Scott who has done a great job for us and will be retiring as CEO, ” Walton stated in the e-mail. “ Mike was also elected to our board, effective immediately. Lee will continue serving as chairman of the executive committee of the board.
“ This is a big day for us and some of you might be wondering why we are making the change at this time, ” the e-mail continued. “ I think Lee said it best when he told me, ‘ This is a great job, but you can’t do it forever and at that point you have an obligation to find the right time for a transition. ’”
Scott has served as president and CEO of Wal-Mart Stores Inc. since 2000.
According to a news release issued by Wal-Mart Stores Inc. early Friday morning, the board also approved the promotion of Eduardo Castro-Wright, 53, to vice chairman of Wal-Mart Stores, Inc., effective immediately. In addition to his current responsibilities as president and CEO of Wal-Mart U. S., Castro-Wright will assume management responsibility for the company’s Global Procurement operation.
“ This management change occurs at a time of strength and momentum for Wal-Mart, ” Walton said in the release. “ Our overall management team has never been stronger. We are confident that the strategy we have in place is the right one for future success and Mike has been actively involved in developing and executing this strategy. We are also pleased that our succession and management development process continues to develop leaders internally. ”
“ Mike Duke is a highly-respected executive both domestically and internationally, with broad experience throughout the company, having successfully led Wal-Mart’s Logistics Division, U. S. operations, and International operations, ” Walton said. “ He understands retail and appreciates the complex global environment in which we operate. He is committed to the culture of Wal-Mart, its mission, and to our associates and customers. He has built strong teams wherever he has led.
“ Eduardo Castro-Wright has a history of delivering results for our company, ” Walton continued. “ As president of Wal-Mart U. S., Eduardo has a vision for our brand, and has built a strong team of senior leaders who have led the business to its current market-leading performance. We believe his international experience will also help drive success in our global procurement organization. ”
Duke has served as vice chairman, leading Wal-Mart International, since 2005, according to biographical information on the company’s Web site. Under his leadership, the company’s International business has become a fast- growing part of Wal-Mart’s overall operations with over 3, 200 stores and 620, 000 associates in 14 markets outside the continental United States. As a stand alone business, Wal-Mart International would be one of the most successful global retailers, with annual sales projected to reach almost $ 100 billion this year.
“ I am looking forward to leading this great company, ” Duke in a release issued Friday. “ Wal-Mart is very well positioned in today’s economy, growing market share and returns, and is more relevant to its customers than ever. Our strategy is sound and our management team is extremely capable. I am confident we will continue to deliver value to our shareholders, increase opportunity for our over two million associates, and help our 180 million customers around the world save money and live better. ”
Scott joined Wal-Mart in 1979 as an assistant director in the logistics division, rising through the ranks to executive vice president of logistics in 1993 and executive vice president of merchandise in 1995. He became president and chief executive officer of the Wal-Mart Stores U. S. division in 1998, and chief operating officer and vice chairman for the corporation in 1999, before taking over as president and CEO in 2000.
“ Lee Scott has made an extraordinary contribution to Wal-Mart during his almost 30 years of service as an associate, and as our president and CEO for the last nine years, ” Walton said. “ Lee has led Wal-Mart with humility and grace, and has been a worthy successor to his predecessors, Sam Walton and David Glass. “ Lee has earned the respect and affection of our associates around the world, and of the Walton family. My dad would have been proud of Lee and his accomplishments. Lee brought a remarkable focus to our mission of saving people money so they could live better, and a heightened sensitivity to Wal-Mart’s role in the world. The actions taken during his tenure will benefit the company, our associates and our customers for years to come. We are pleased that Lee will serve as an advisor to Mike for a period of time, much as David Glass did for Lee. ”
“ It has been a privilege to lead the company Sam Walton created, a company that continues to live the mission and culture he established, ” Scott stated in the release. Wal-Mart plans to make an announcement on Duke’s successor as president of Wal-Mart International by the end of the fiscal year. About Mike Duke Mike Duke has served as vice chairman, leading Wal-Mart International, since 2005. Under his leadership, the company’s International business has become a fast-growing part of Wal-Mart’s overall operations with more than 3, 200 stores and 620, 000 associates in 14 markets outside the continental United States. As a stand-alone business, Wal-Mart International would be one of the most successful global retailers, with annual sales projected to reach almost $ 100 billion this year. Duke has full operating responsibilities for all of the company’s international operations, including Argentina, Brazil, Canada, China, Costa Rica, El Salvador, Guatemala, Honduras, India, Japan, Mexico, Nicaragua, Puerto Rico, and the United Kingdom. He also has responsibility for Wal-Mart’s global procurement organization. In leading Wal-Mart’s expansion into mature and emerging markets, Duke has built a strong international management team that has delivered excellent operational results in a complex global environment. Duke joined Wal-Mart in 1995. Since then, he gained broad experience throughout the company, leading the Logistics, Distribution and Administration divisions as well as U. S. Operations. As Vice Chairman, Duke has been actively involved in developing and executing corporate strategy. He has focused on setting higher standards of excellence for the company’s resources and people — from the redesign of logistics and merchandise distribution systems to the recruitment of talent and development of strong teams. Prior to joining the company, Duke had 23 years of experience in retailing with Federated Department Stores and May Department Stores. Duke graduated from Georgia Tech with a bachelor’s degree in industrial engineering. He serves on the Board of Directors of the U. S.-China Business Council as well as CIES-The Food Business Forum, and is on the Executive Board of Conservation International’s Center for Environmental Leadership in Business. Duke also serves on the University of Arkansas Board of Advisors. Duke and his wife, Susan, have two daughters and a son. They are active in their church and community.
— Biography provided by Wal-Mart Stores Inc
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