Wal-Mart Stores Inc. filed documents Wednesday with the Securities and Exchange Commission detailing the plans for the retailer’s chief financial officer to retire at the end of January.
Tom Schoewe, 57, known as much for his spectacular entrances at Wal-Mart shareholders meetings each year as for his work at the company, will step down from the chief financial officer role as of Nov. 30 but will stay until Jan. 31 to assist with the transition, a company news release stated Wednesday.
Wal-Mart’s board has elected Charles Holley, 54, to replace Schoewe.
Holley currently is an executive vice president of finance and treasurer responsible for corporate strategy and planning, tax, investor relations, corporate mergers and acquisitions, risk management, and treasury operations that include capital markets and cash management, according to the release.
Retail analyst Patricia Edwards of Trutina Financial in Bellevue, Wash., said in an e-mailed statement that the change in financial leadership was “interesting” in the wake of several other recent leadership changes at the company.
On June 29, Wal-Mart said that Eduardo Castro-Wright, president and chief executive officer of U.S. operations,would become chief of the ecommerce and global food and merchandise sourcing office in California. Bill Simon, 50, took Castro-Wright’s place immediately, shifting from chief operating officer for the U.S. division.
In July, John Fleming, first with Wal-Mart’s Internet division and later chief merchandising officer, made a personal decision to leave the company after 10 years’ service.
Also in July, Simon named members of his senior leadership team, starting with a promotion of Gisel Ruiz to executive vice president for Wal-Mart’s people division. Jack Sinclair was promoted to lead the food and the health and wellness merchandising teams and John Westling was promoted to lead general merchandising and replenishment teams until Fleming can be replaced.
Since then the company has reassigned several top executives under Simon’s leadership.
“As far as competency, no doubt Holley is qualified,” Edwards wrote.
Wal-Mart Chief Executive Officer and President Mike Duke said in the release that Holley is a talented strategist who understands the details of Wal-Mart business and the financial markets.
Duke also said in the release that Holley was a key part of the company’s international expansion.
Schoewe has overseen the financial functions of the company during tremendous growth and international expansion while increasing returns to shareholders , dividends and share repurchases, Duke said in the release.
Schoewe joined Wal-Mart in 2000 after serving 14 years at Black and Decker, most recently as chief financial officer, the release stated.
In the SEC filing, Wal-Mart stated that Schoewe notified the company of his pending retirement on Sept. 23.
According to the details of the retirement agreement included in the filing, Schoewe will continue to receive his current annual base salary through Jan. 31 and will be eligible to receive his full incentive payment under the company’s plan for the fiscal year ending Jan. 31, 2011.
According to a report filed with the SEC in April and reported in the Democrat-Gazette, Schoewe saw his total compensation rise marginally to $7.22 million in fiscal 2009 from $7.16 million.
Schoewe will forfeit 69,804 target performance shares he received on Jan. 23, 2009 and 62,465 target performance shares he received on Jan. 19, 2010.
He has also agreed to extend the noncompete agreement with Wal-Mart until Jan. 31, 2014, in return for transition payments of $1.65 million and for having 15,011 stock options and 69,131 restricted stock grants become fully vested on Jan. 31, 2011.
Schoewe often interacted with the hosts or entertainers before delivering his financial report at the annual Wal-Mart shareholders meetings in Fayetteville. Through video dubbing, he has appeared to participate in aerial acrobatics and auditioned for a televised talent show in some of the most recent meetings.
Holley joined Wal-Mart in 1994. Before then, he worked for Tandy Corporation as managing director for its European Memorex division and served as director of finance for its international operations. He also spent more than 10 years with Ernst & Young accounting firm.
Business, Pages 27 on 09/30/2010