File this under Julie Roehm: avenger. The PR food fight between Wal-Mart Stores, Inc. (NYSE: WMT) and its former marketing communications chief just got more interesting. I don't know why she picked late Friday afternoon on a get-away-weekend to launch her latest missive but according to the Wall Street Journal, Julie Roehm is alleging that WMT executives violated its ethics policy by accepting discounts on yachts, diamonds and personal gifts from vendors.
To put this into perspective, here's a recap of the rounds so far:
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Wal-Mart fires Roehm alleging she accepted gifts from an advertising agency that was later chosen to handle WMT's ad account (12/06).
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Roehm countersues WMT for breach of contract (12/06).
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In a countersuit, WMT releases salacious details about an alleged affair Roehm had with a subordinate -- Sean Womack -- accusing her of misusing WMT travel funds on business trips with him. The suit cites one e-mail purportedly sent to Womack by Roehm as saying: "I think about us together all of the time. Little moments like watching your face when you kiss me." (3/07).
And today's round goes to Roehm, who alleges that WMT CEO H. Lee Scott, received "preferential prices" on yachts and "a large pink diamond for his wife" through his relationship with Irwin Jacobs. One of Jacobs's companies, Jacobs Trading, has the exclusive right to buy unsold WMT merchandise.
Roehm also accused a group of executives, including WMT's executive vice president for marketing, John Fleming, of violating WMT's ethics policy by accepting $300 tickets and backstage passes to an Eagles rock concert during a meeting with vendors in Barcelona.
While this is all great stuff for gossip lovers, it doesn't really do much for WMT shareholders or customers.
Peter Cohan is President of Peter S. Cohan & Associates, a management consulting and venture capital firm. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in Wal-Mart.
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Reader Comments (Page 1 of 1)
5-25-2007 @ 10:57PM
William Martin said...
There is no doubt in my mind that all of this is true concerning all parties involved. As you say it doesn't do much for us shareholders.Then there is the old saying"Allow fools to be fools as long as they are happy". This would about sum it up for all the higher ups at WMT including the board.Billy Martin
5-27-2007 @ 12:36AM
somebodywho knows said...
She filed before the Shareholders meeting to make her statement. The question is who is the old executive feeding her the old gossip?
5-27-2007 @ 3:35PM
Mike Dover said...
Good for Ms. Roehm to stick up for herself.
I actually read both suits, point by point.
Her most important point is that Draft was already winning 9-1 before she cast (the last) vote.
Who would go work for these guys?
6-02-2007 @ 11:55AM
Rita said...
Julie Roehm had an affair with a subordinate (whose salary she controlled) against Wal-Mart's rules. Those e-mails that Roehm claims were taken out of context -- PLEASE. It is what it is, and she got caught. Goodbye!
8-14-2007 @ 12:27AM
Old Lady said...
The word ethics is no longer in the vocabulary of corporate America, business, or politics. Not when the bottom line is to make as much money as they can at all cost. They are in the business of selling their souls. If CEOs, in America, committed suicide like they do in China we would not have any at the helm, and we will all be better off if they were not there. And when they are exposed they plead the fifth, or plead ignorance. But every Monday morning they have their subordinates signing ethics policies. It is a do as I say and not as I do world.