LITTLE ROCK — Executives at the world’s largest retailer were paid less in fiscal 2011 than in the previous year, according to a Securities and Exchange Commission filing by Wal-Mart Stores Inc. on Monday.
The figures, disclosed in the company’s annual proxy statement, come after Wal-Mart Stores Inc. reported in late February that its net income for the fourth quarter rose by more than 27 percent to $6.06 billion from $4.76 billion in the third quarter.
Despite the increase innet income, the company has posted seven straight quarters of declining same-store sales.
Same-store sales exclude the impact of stores opened or closed in the past year and are a key measure of success in retailing.
Mike Duke, the Bentonville-based company’s president and chief executive officer, saw his total compensation dip by nearly $500,000 to $18.7 million in fiscal 2011 compared with the $19.2 million he earned in fiscal 2010.
Duke called the company’s fiscal 2011 net sales of $419 billion and record shareholder returns of $19.2 billion through dividends and share repurchases a “solid financial performance,” in a company news release Monday.
In its most recent proxy filing on April 29, 2010, Wal-Mart rival Target Corp. reported that Greg Steinhafel, chairman, president and chief executive officer, received total compensation of $13.31million for fiscal 2009.
Other executives included in the proxy last year all reported lower total compensation. No bonuses were awarded to the top executives in fiscal 2011 according to the filing.
Doug McMillon, president and CEO of Wal-Mart International, reported total compensation of $8.8 million in fiscal 2011 compared with the $11.2 million he earned in fiscal 2010.
Vice Chairman Eduardo Castro-Wright’s total compensation was $13.9 million in fiscal 2011 compared with $13.9 million in fiscal 2010.
Retired Chief Financial Officer Tom Schoewe’s total compensation was $3.09 million in fiscal 2011 compared with $7.22 million in fiscal 2010.
Two other executives were promoted to new positions during fiscal 2011 and are reporting total compensation for the first time for that year.
Bill Simon, president and CEO of Wal-Mart’s U.S. operations, reported a total compensation of $14.05 million in fiscal 2011.
Charles Holley Jr. was promoted to chief financial officer in Schoewe’s stead and reported a total compensation of $8.19 million in fiscal 2011.
The Arkansas Democrat-Gazette used The Associated Press formula to calculate executive compensation, which consists of adding salary, bonus, incentives, perks, above market returns on deferred compensation, and the estimated value of stock options and awards granted during the year.
Wal-Mart reported April 12 that it is nearly complete with restocking about 8,500 items previously removed from store shelves during “Project Impact.”
Project Impact was designed to remove about 11 percent of the company’s stock designated as slow-moving items but actually tarnished the retailer’s reputation as a one-stop shopping destination.
Duke said in the release that his top priority for fiscal 2012 is to push same store sales back into positive territory while seeking opportunity to grow in the United States through supercenters and smaller formats aimed at urban markets.
The proxy statement filed with the SEC set the company’s annual shareholders meeting for 7 a.m. on June 3 at the Bud Walton Arena on the campus of the University of Arkansas at Fayetteville.
Business, Pages 23 on 04/19/2011