The Canadian Press - ONLINE EDITION

Wal-Mart cut outgoing CEO's pay 73 per cent to $5.6 million in 2013

  • Print

NEW YORK, N.Y. - The pay of Wal-Mart Stores Inc.'s outgoing CEO fell 73 per cent in 2013 because he received a lower performance-based bonus and he didn't get stock awards that are given in anticipation of future performance.

The world's largest retailer gave Duke, 64, a compensation package worth about $5.6 million, down from $20.7 million in the prior year, according to an Associated Press analysis of a regulatory filing Wednesday. The fiscal year ended Jan. 31 and Duke was replaced by Doug McMillon, head of Wal-Mart's international division, on Feb. 1.

McMillon received a compensation package valued at $25.6 million for 2013. The bulk of the package, $23 million, is in stock grants over three years that are linked to company performance goals.

Separately, Wal-Mart said former CEO Lee Scott won't stand for reelection to Wal-Mart's board at the company's annual shareholders meeting on June 6. The company said Scott's departure from the board is in line with other CEOs leaving. Chris Williams will also not stand for reelection after 10 years, per Walmart's corporate governance guidelines.

Wal-Mart Stores is facing difficulties on a number of fronts. The Bentonville, Ark.-based company's low-income shoppers in the U.S. are struggling with stagnant wages and rising costs. At the same time, Wal-Mart faces fierce competition from online competitors and dollar chains that offer convenience and lower prices.

The company also has image problems. Wal-Mart is being pressured to further increase its oversight of factory conditions abroad following a building collapse in a year ago in Bangladesh that killed more than 1,100 garment workers. And it faces criticism that it pays its hourly workers too little.

Duke, who had been CEO since 2009, received a base salary of $1.4 million and a performance based bonus of $2.8 million, down 35 per cent from a year ago.

He did not receive any stock awards, compared with a hefty grant of $13.6 million in the prior year. The company said it generally gives equity awards to executive officers in January as part of their compensation for the upcoming year. Duke did not receive any as he retired.

Other compensation totalled $490,090, including retirement contributions and $144,586 for personal use of company aircraft.

For the year ended Jan. 31, Wal-Mart's net income after paying preferred dividends fell 6 per cent to $16.02 billion. Revenue rose 2 per cent to $476.29 billion.

The year included a key holiday quarter hurt by severe weather and slow spending. And the expiration of a temporary boost the government's food stamp program hurt Wal-Mart's grocery business.

Wal-Mart's results give insight into shopper behaviour during the U.S. economic recovery. It accounts for nearly 10 per cent of retail spending in the U.S., excluding autos.

The Associated Press formula calculates an executive's total compensation during the last fiscal year by adding salary, bonuses, perks, above-market interest that the company pays on deferred compensation and the estimated value of stock and stock options awarded during the year. The AP formula does not count changes in the present value of pension benefits. That makes the AP total slightly different in most cases from the total reported by companies to the Securities and Exchange Commission.

The value that a company assigned to an executive's stock and option awards was the present value of what the company expected the awards to be worth to the executive over time. Companies use one of several formulas to calculate that value. However, the number is just an estimate, and what an executive ultimately receives will depend on the performance of the company's stock in the years after the awards are granted. Most stock compensation programs require an executive to wait a specified amount of time to receive shares or exercise options.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes


  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.


Make text: Larger | Smaller


Key of Bart - The Floodway Connection

View more like this

Photo Store Gallery

  • July 1, 2012 - 120701  -   Canada Day fireworks at The Forks from the Norwood Bridge Sunday, July 1, 2012.    John Woods / Winnipeg Free Press
  • A golfer looks for his ball in a water trap at John Blumberg Golf Course Friday afternoon as geese and goslings run for safety- See Joe Bryksa’s 30 day goose challenge- Day 24– June 15, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)

View More Gallery Photos


Will you miss Grandma Elm?

View Results

View Related Story

Ads by Google