Wal-Mart names Duke to succeed Scott as CEO (unexpected reshuffle)

The Edmond Sun / The Associated Press ^ | November 22, 2008 | Anne D'Innocenzio

[2ndDivisionVet]

Wal-Mart Stores Inc., the world's largest retailer, unexpectedly announced Friday that its chief executive will retire in February and be replaced by the head of its international division.

The surprise change in leadership right before the crucial holiday season comes as Wal-Mart has roared back to success as people looking for bargains shop more at discounters. Still, the company faces hurdles ahead amid slowing growth in the U.S., and analysts say the decision to tap an international executive serves as a testament that the company sees its future growth oversees.

Bentonville, Ark.-based Wal-Mart said Mike Duke, 58, vice chairman of its international division, will take the reins from Lee Scott, 59, effective Feb. 1. Duke also becomes a member of the board of directors immediately.

Scott, who joined Wal-Mart in 1979 and became president and CEO in 2000, will continue as chairman of the executive committee of the board until January 2011, according to Wal-Mart spokesman Dave Tovar. He will also serve as an adviser to Duke until 2011.

During his tenure, Scott faced increasing scrutiny particularly from union-backed groups over issues from environmental concerns to wages and health care, which critics say have been too skimpy. The negative publicity had depressed the company's stock price for two and a half years and made the company the poster child for bad corporate behavior.

But Wal-Mart's overhaul of its stores and merchandise and its re-emphasis on low prices came together at a time when the economy began to turn sour last year. Since September 2007, Wal-Mart's shares have made a remarkable comeback and its image has improved as the company, under Lee's leadership, implemented environmental sustainability efforts, a discount drug program for customers and other initiatives.

[2ndDivisionVet]

"During his tenure, Scott faced increasing scrutiny particularly from union-backed groups over issues from environmental concerns to wages and health care, which critics say have been too skimpy."

IIRC, the average associate at Wal-Mart makes around $14/hour, which isn't too shabby for retail, and their medical insurance is on par, or better, than it's competition. The unions are just ticked off that they can't get a toe-hold inside the company.

[ken21]

wal-mart does not get the credit it deserves.

meanwhile, the left wants to destroy it with their unions.

[ken21]

dollar for dollar,

wal-mart has done more for the lower classes of this country

than the fdr-lbj-carter-clinton administrations have done.

and the same for comrade obamao.

[Mind-numbed Robot]

I am an old guy who works for Wal*Mart. They are a great company with great benefits available cheaply. The also sell good products, not the cheap crap some seem to think.

The unions and the left hate them because they are the epitome of free enterprise.

I expect this administration to try to destroy them.

[Gabz]

And yet ANOTHER Saturday WalMart thread!!!!

Pingaroony!

[BooBoo1000]

I don't understand people, they all rant and rave about Wal Mart buying goods from China, I work for one of the largest drug companies in the U.S. and 75% of the stuff on our shelves is from China.

[Gabz]

I totally agree with you.

I don’t particularly like shopping, WalMart makes my life easier. I just wish they hadn’t done away with their lay-a-way, though.

[ican'tbelieveit]

Given the tightening credit markets, Lay-a-way might make a comeback. They got rid of it because credit was cheap.

[Gabz]

Not just because credit was so cheap, but there is actually a big expense to the stores to do lay-a-way. I don’t exactly fault them for it, it was a business decision -— but it bites for folks like me that don’t do credit. Lay-a-way always let me take advantage of special sales, especially for stuff like back-to-school and Christmas.

[jerry639]

IIRC, the average associate at Wal-Mart makes around $14/hour, which isn't too shabby for retail, and their medical insurance is on par, or better, than it's competition.

You are right when it comes to some areas of the Country but that isn't true in others. In southern Indiana WalMart doesn't pay 60% of $14/hour to most of it's workers.

[pnut22]

Unless you include management, the average is about 10 an hour. It’s competitive with other retail. Raises are 40 to 60 cents each year. The benefits are ok. A weeks vacation after one year, 2 after 2 years, 3 after 7. Because turnover is high the average wage stays low, but many with 15 years are in the 20 dollar an hour range. Salaries are now capped though at 2.1 percent of the starting wage for a position. They also give you 4 sick time hours every 2 weeks.

[Extremely Extreme Extremist]

wal-mart has done more for the lower classes of this country

Yeah that's why the Left hates it. They want inner-city and working poor folks dependent on government programs. I would love for that stupid union bill to pass and some lefty judge orders Wal-Mart to unionize, and Wal-Mart announces it will close all of its stores and list the reasons why. Maybe that'll knock some sense into the people who shop there.