Ahead of the upcoming shareholder meeting and webcast to analysts and institutional holders this Friday, Wal-Mart (WMT-NYSE) has some final decisions to make and they could actually decide to be proactive for a change.
I have personally appeared on CNBC noting how the company would do better for the investor public that owns Wal-Mart stock if they would replace Lee Scott with an officer that at least can appear to be a gentler and kinder corporate head. Atfer my last appearance on CNBC, I even came up with the beginnings of a 10 STEP REFORM PROGRAM that Wal-Mart could at least embark upon. The board knows it can’t just sit idle forever, but the question is really as to how long they will stick their head in the sand.
The company has an image problem in a severe way with its shoppers. Once again, if the board doesn’t recognize this then they are more ignorant than blind. This image is what is keeping sales down, probably just as much as the fact that other retailers are beating them at their game.
Wal-Mart Watch has sent out its videothat it claims to be delivering to Wal-Mart’s (WMT-NYSE) boarddirectors individually. Some of the issues that are brought up gobeyond what it is ever going to happen, but some points are issues theboard should at least consider. The truth is that I have long beenskeptical of most activist groups because they often take things waytoo far and in many cases go so far to the other side that they oftenlook just as foolish as the cause they are fighting against. But thisis at least a start and the board would be foolish to think that theydon’t need to even bother listening. The truth is that they don’t haveto listen to yelling, they don’t have to make promises they don’t wantto keep, and they don’t have to respond to this criticism on the fly.How long can the board, including the Walton heirs, stick their head inthe sand?
Jon C. Ogg
May 30, 2007
Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.
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