Walmart Reducing Board Members To Improve Efficiency

Four board members of Walmart leave, while its shrink its board down with the hopes of quick decision making and more efficiency.

Walmart announced its plans on Thursday of making changes to its board of members and making itself more compatible with the corporate world of the United States, and improve efficiency to make quicker decisions. The giant retail chain is going to cut down its board number to 12 which were 15 before; it hopes that this change will make it compete in a better manner in the diverse market today. 

The grocery chain will make this decision effective after its annual shareholders meeting which is going to be held on June 3 this year at the Bud Walton Arena, University of Arkansas. Board members Jim Walton, Aida Alvarez, Roger Corbett and Mike Duke are going to retire but will not be standing for re-elections, thus they will be leaving the organization officially. Chairman Greg Penner said, 'With these retirements, we view this as a time to make our board more nimble, while maintaining its independence and further aligning on Walmart’s strategic priorities.'

Walmart Wholesale has nominated Steuart Walton for election to the board of directors, thus the number in when this is done will be 12, meeting the US corporate standards. Steuart is the son of Jim Walton, who will be retiring after the annual shareholder meeting, making this assignment a leadership transition going to the next generation this time to the Walton family. Steuart Walton has a good amount of experience according to his past, he has worked Allen & Overy, LLP  in London handling non US entities equities and debts, and has even worked at Walmart International handling the acquisitions and merges. Stueart is also the chief executive and founder of Game Composites, Ltd.

Aida Alvarez, who is leaving the retail chain, has been a member of US President Bill Clinton’s cabinet. Mike Duke was the chief executive of Walmart stores at some point from 2009 till 2014. With these departures and reduction in the department of board of directors, the retailer hope to achieve high efficiency and make itself more adaptable to customers’ demands and changes in the corporate world of the US. 

Walmart will be able to remain 67% independent once all these changes have been made for good with five independent board members. The company hopes that this will make the board refreshing with new and best talent possible. The Walton family stays in the board of directors and has had three members so far because they are aware of what the business is really about, since this Walton founded the retail chain. The restructuring will begin in June, once everything is in order the members retire.