[IMC-Boston-Editorial] Wal-Mart shareholders challenge options gap

[Betsy Leondar-Wright]

PRESS RELEASE FROM RESPONSIBLE WEALTH
For immediate release ­ Nov. 16, 2005
Contact: Betsy Leondar-Wright, (617) 423-2148 x113
 
ALWAYS LOW ASSETS:
SHAREHOLDERS FILE CHALLENGE TO WAL-MART'S OPTIONS GAP
 
Boston ­ Wal-Mart shareholders today filed a resolution with the company
requesting public disclosure of who gets Wal-Mart stock options, broken down
by race and gender.
 
In each of the last three years, between 4.8% and 13% of all Wal-Mart stock
options went to the top five officers, who make up 0.0003 percent of the
company's employees. All five are white men.
 
The filing of the resolution was timed to coincide with a national Wal-Mart
Week of Higher Expectations.
 
In addition to Northstar Asset Management clients and other members of
Responsible Wealth, the resolution was filed by Martha Burk, the director of
the National Council of Women¹s Organizations¹ Corporate Accountability
Project. Dr. Burk is best known for leading the effort to open the Augusta
National Golf Club to women.
 
A second-generation Wal-Mart shareholder, Dr. Burk presented a similar
resolution at last April¹s annual meeting. She said today, ³I am still
concerned that the wealth creation opportunities afforded by the company are
disproportionately going to white men. The company needs to disclose the
data."
 
Last year¹s resolution won 15% of the vote, an unusually high number given
how much of the stock is owned by Walton family members and Wal-Mart¹s top
management.
 
Margaret Covert, Shareholder Action Coordinator of NorthStar Asset
Management, said, ³Wal-Mart¹s emphasis on ŒAlways Low Prices¹ comes at a
cost to employees working for always low wages. The tremendous profits that
have enriched the Walton family and other major shareholders, if shared more
broadly with all Wal-Mart workers, could mean health coverage and
homeownership for those now lacking them.²
 
Added Scott Klinger, co-director of Responsible Wealth, ³In the last few
weeks Wal-Mart has committed to greater transparency. This resolution is an
invitation to uphold that commitment. Shareholders deserve to know which
employees are being rewarded with stock options, and whether their company
is contributing to the growing U.S. racial wealth divide.²
 
A court decision is expected in coming months on Wal-Mart¹s appeal of the
formation of a class for the largest gender discrimination lawsuit in
history, filed by current and former women employees.
 
The text of the resolution can be seen online at
http://www.responsiblewealth.org/shareholder/2006/WalMart.html
 
Responsible Wealth (http://www.responsiblewealth.org) is a national network
of affluent Americans who are concerned about deepening economic inequality
and advocate widespread prosperity.
            
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Betsy Leondar-Wright
Communications Director, United for a Fair Economy
(617) 423-2148 x113
29 Winter Street
Boston, MA 02108
http://www.faireconomy.org
 
 
United for a Fair Economy is an independent national organization
that raises awareness of the damaging consequences of concentrated
wealth and power.
 
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