Audrey MENAGER

Vali EYMARD
GROUP 3 Auraud VALAGEAS
Dalil MEDIAHED
Yann RIBOT
Sanjth PRASAD

ACTIVIST INVESTORS
IN
 A B O U T WA L M A RT

- US mutlinational retail company

- Founded by Sam Walton in 1962
- In 2013:
 Sales volume of $476 billion,
 World’s largest company in terms of revenue
 23 million employees
 11000 supermarkets and hypermarkets

Their key successes are:

 High technology with store ad warehouse connected

 Price makers with its suppliers
 Variety with lots of different goods and services: clothes, food, music
download
 Policy with 3 basics belief and governance principles: service to their
customers, respect for individuals and striving for excellence
 M A I N WA L M A RT ‘ S CO M P E T I TO RS

Carrefour:
• 3500 stores
• 20% of market share
• Leading toy distributor with 45% of market share
• Toys R us

However, Walmart has a predominantly North American presence while

Carrefour is notoriously absent from this region of the world.
 L A RG E R E TA I L I N D U ST RY

Stores involved in supermarkets: Hypermarkets, supermarkets,

mini-markets, popular stores, department stores (in the city
center), specialized superstores and hard discount stores.

• Bad reputation in this sector

• Very competitive
• Interesting because of constant change
• Rapid evolution necessary to survive
• High bargaining power with suppliers
 IN POWER:

President, Chief
C. McMillon 52 1990 Executive Officer &
Director
Gregory B. Penner, Non-Executive
48 2008
MBA Chairman
Chief Operating
Jonathan Barker - -
Officer
Chief Financial Officer
Brett M. Biggs, MBA 50 2000 & Executive Vice
President
Chief Technology
Jeremy King - 2011
Officer & Executive VP

Chief Information
Clay Johnson 47 2017
Officer & Executive VP
Sam Walton 73 1969 Director
James Ireland Cash Jr., Lead Independent
70 2006
PhD Director
Steven S. Reinemund,
70 2010 Independent Director
MBA
Marissa Mayer 41 2012 Independent Director
S H A R E H O L D E RS
 WA LTO N E N T E R P R I S E L LC

• Almost all the family’s fortune is held through Walton Enterprise LLC serving as
investment vehicle for the family
• Walton Enterprises LLC Is Funded By Wal-Mart Dividends and Other Subsidiaries
• Throughout the year, members of the Walton family meet to discuss how they want to
handle the money held within Walton Enterprises LLC.
• Walton Enterprises LLC owns an estimated 1,680,506,739 shares of Wal-Mart stock.
The family holds around 46.2% of Wal-Mart with other investors owning the other
57.4%.
• Each of the individual family members owns somewhere between 2.8 million and 11
million shares of Wal-Mart Stores stock outright, in their own name.
 VA N G UA R D I N D E X F U N D I N V ESTO RS S H A R ES

• The Vanguard 500 Index Fund Investors Shares was issued on Aug. 31,
1976, by Vanguard.

• Vanguard holds a portfolio of 507 stocks with total net assets of

$421.1 billion.

• Vanguard is a major shareholder of Walmart and holds 25.4 million shares

of its common stock

• Vanguard’s position in Wal-mart only accounts for 0.64% of its portfolio.

 C ) I D E N T I F I C AT I O N A N D D ES C R I P T I O N O F T H E
D I R EC TO RS

1) Structure of the directors

• 12 members
• 5 members are independent
• There is diversity among the
board
• The chairman and the CEO are 2
different persons
 2) THEIR DIVERSITY

• Ethnic diversity

• Demographic diversity  gender and age

• Background diversity

• Style of management

• Companies they work in  Investment companies, social network

companies.
 3) SELECTION AND REMOVAL PROCESS

• FAIRNESS HONESTY INTEGRITY

 The 3 main values of Walmart

• The board needs to meet the criteria of independence

• Some criteria: outstanding achievement, personal career, broad

experience, wisdom, integrity, understanding of the business
environment…

• The decision is made by a majority of vote in an uncontested election

 4) THE COMPENSATION

• The compensation of the directors is regulated by the compensation and

management development committee

• The compensation is based on performance

 5) DUTIES

• Keeping the company informed about any changes in their professional

situation

• Advising the business development of the company

• Reviewing/ approving the diferrent strategies and business plans

• Evaluating board processes and performance

• Evaluation the company performance

• Assure compliance with laws and regulation

 6) LIABILITY

• “Exercise their business judgment to act in what they

reasonably believe to be in the best interests of the
shareholders and the Company, and to perform their duties
of care and loyalty.”
 D ) I D E N T I F I C AT I O N A N D D ES C R I P T I O N O F
K E Y E X EC I T I V ES

• 2014: Doug McMillon succeed to Mike Duke as WalMart CEO.

• Company guy
• Compensation: 19.4M$. Different natures.
• 1970: publicly traded company. First stock sold at 16.5$ per
share.
• Index on the market. Advantage of being a publicly traded
company. Performances measures are easier.
E ) S O C I A L R ES P O S I B I L I T Y
BECOME THE MOST TRUSTED RETAILER
Walmart and the Walmart
Foundation believe that every
family should have access to
affordable, nutritious,
sustainably-grown food.
Walmart’s Education program:
Provide career advancement training.
https://www.youtube.com/watch?time_continue
=183&v=t9PXJJOxE20
Food donation:
https://www.youtube.com/watch?time_co
ntinue=71&v=Hg2vqXORIzQ
Sustainability Goals:
Be supplied by 50% renewable energy.
Reduce greenhouse gas by 18%
Improving the lives of the people
around the world:
Source $20B in products from U.S
women-owned businesses from
2016.
Source $250B in products
supporting American jobs by
2023.
In 2013, Walmart and the Walmart Foundation
gave $71 million in cash and in-kind donations
internationally.
WA L M A RT ’ S AT T R AC T I V E N ES S TO
AC T I V I ST I N V ESTO RS

Intelligent
capital Focused
Stability management Global
effort on
and Brand through diversificati
dividends continuous
Name on
and innovation
reinvestment
 WHAT WE WOULD CHANGE

• Developement of a strong ethical code

• Transparency and controls

• Deviate from the technological trend

R E S I STA N C E I N S I D E A N D O U T S I D E WA L M A RT

Walmart denies any wrongdoing and says that low prices are the result of
efficiency.

• Inside the company

– Employees
– Labor Unions

• Outside the company

– Government
– Media
– Suppliers
 KEYS TO SUCCESS

• Understand weakness

• Be respectful of the workforce

• Long-term vision
THANK YOU
EVERY ENDING IS
JUST A
NEW
BEGINNING