[IMC-Boston-Editorial] Wal-Mart shareholders urge scrutiny of race & gender inequities in equities

[Betsy Leondar-Wright]

PRESS RELEASE FROM RESPONSIBLE WEALTH
For Immediate Release - May 25, 2006
Contact: Betsy Leondar-Wright - (617) 423-2148 x113

INEQUITY IN EQUITIES?
WAL-MART SHAREHOLDERS URGE EXPOSURE OF ALLOCATION BY RACE & GENDER
 
Which Wal-Mart employees get stock options? At the Wal-Mart annual meeting
on June 2 in Fayetteville, Arkansas, Dr. Martha Burk will ask this question.
 
A Responsible Wealth shareholder resolution that got over 15% of the vote
last year ­ unusually high at a company with so much stock closely held by
family members and management ­ will once again come to a vote, asking the
company to disclose the race and gender composition of those receiving stock
options and restricted stock. For the full text of the resolution, please go
to http://www.responsiblewealth.org/shareholder/2006/WalMart.html
 
Dr. Burk, past chair of the National Council of Women¹s Organizations (NCWO)
and now director of the organization¹s Corporate Accountability Project, is
best known for leading the effort to open the Augusta National Golf Club to
women. Last year she dared CEO Lee Scott, the Board of Directors and fellow
shareholders to ³break new ground² in the spirit of Sam Walton. She will be
available for interviews on the day of the meeting on her cell phone,
202-247-1300.
 
"We applaud Wal-Mart for its recent decision to release the company's EEO-1
information to the public. The information we seek on stock options through
our resolution is every bit as important in determining whether the company
is being fair to women and minority men. We think Sam Walton would have
agreed, and we urge Wal-Mart management to honor his legacy with the
disclosure we are asking for," Dr. Burk will say at the meeting.
 
According to the 2006 proxy statement, 18.2% of options awarded went to the
five highest paid officers, who make up 0.00028% of the company¹s employees.
Four of the five are white men.
 
³The map of stock option distribution will reveal who holds the real power
within Wal-Mart and whom the company values,² says Robin Leeds of
Responsible Wealth, who served in the Clinton administration¹s White House
Office on Women's Initiatives and Outreach. She will attend the Wal-Mart
meeting with the proxy of Responsible Wealth member Judge Richard E. Tuttle.
She will be available for interviews on the day of the meeting on her cell
phone, 202-744-2283.
 
Wal-Mart¹s opposition statement contends that producing this report is
entirely unnecessary because the company¹s appointed committees ­
Compensation, Nominating and Governance Committee (CNGC) and the Stock
Option Committee (SOC) ­ are successful in meeting the company¹s diversity
goals. The current Management Incentive Plan states that an officer¹s annual
incentive payment could have been reduced by up to 15 percent for not
meeting diversity goals. In fiscal year 2006, the annual proxy statement
says that no Executive Officer¹s incentive payment was reduced.
 
In response, Ms. Leeds rebuts, ³The CNGC is made up of Douglas N. Daft
(white), John D. Opie (white), Jose H. Villareal (Latino), Linda S. Wolf
(white woman), while the SOC is made up of David D. Glass (white), H. Lee
Scott, Jr. (white), and S. Robson Walton (white). You can look at their
pictures on WalMart¹s own website. Now, do you think employees and
shareholders have enough reasons to question the results produced by these
directors?² 
 
³We¹re simply advocating for what many large U.S. companies are already
doing - distributing options broadly among employees,² says Ms. Leeds.
³Wealth generated from these option gains has allowed employees ­
hard-working people who are powerful contributors to the company¹s success ­
to fund a family member's college education, make a down payment on a house,
provide for an enhanced retirement or establish a reserve pool for
emergencies.²

³In light of increased public scrutiny of and lawsuits against Wal-Mart, I
believe that our proposal for a report will help management and owners
determine whether there¹s a glass ceiling in employee equity compensation,
and thus help prevent potential liabilities down the road,² claims Dr. Burk.
 
Responsible Wealth (http://www.responsiblewealth.org) is a national network
of affluent Americans who are concerned about deepening economic inequality
and advocate widespread prosperity.
 
                          ###


~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~