Wal-Mart Stores, Inc. (NYSE:WMT) does take some shareholder suggestions to heart, although many of them are quashed by the board. Wal-Mart's board must now be elected by a majority vote instead of a plurality vote, something that has been brought up several times at annual shareholder meetings. Wal-Mart also said that plurality voting will continue to be used in contested elections when the quantity of director candidates surpasses the number of available positions, which makes sense and is not a change from previous policy at all.
Why make the change to the voting and election procedure now for Wal-Mart? It seems an odd time, but perhaps there is something underway soon with the Wal-Mart board that makes the announcement of a majority-elect board some kind of advantage for the world's largest retailer.
Rob Walton, Wal-Mart's board chairman, said, "We believe that due to recent changes in Delaware law, the majority vote standard is now in the best interests of the company and its shareholders." This is most likely true, although the specific changes to state law where Wal-Mart is officially headquartered would most likely apply to other public companies with registered headquarters located in Delaware.
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Reader Comments (Page 1 of 1)
9-26-2006 @ 3:58PM
TOM BUYALOS said...
I HAVE BEEN A STOCK HOLDER FOR 15 YEARS.I PRESENTLY HOLD 16,000 SHARES.MY BROKER SAYS THAT I SHOULD SELL THESE SHARES AND INVEST IN SOMETHING ELSE.WHAT DO YOU THINK THE FURTURE HOLDS FOR ME AND THE OTHER LONG TERM HOLDERS?
9-26-2006 @ 4:08PM
Brian said...
Well, I can't dispense investing advice, but what do you make of this:
http://www.fool.com/News/mft/2006/mft06070619.htm
Regards,
Brian