May 24, 2013
/PRNewswire/ -- Influential proxy advisory firms Institutional Shareholder Services (ISS) and Glass Lewis this week announced their support for a shareholder proposal at Wal-Mart Stores, Inc. asking the company to publicly disclose whether it has clawed back pay from executives whose actions have caused significant financial harm to the company and its owners. Large institutional investors including the The Pennsylvania Treasury Department and the Office of New York City Comptroller
John C. Liu
have signaled their support for the proposal as well as other large institutional investors.
Proposal No. 8,
Request for Annual Report on Recoupment of Executive Pay
, was filed at Wal-Mart by a
global investor coalition led by the UAW Retiree Medical Benefits Trust (Trust) and will be considered by investors at the company's
June 7, 2013
"We welcome the support of ISS and Glass Lewis and the institutional investor community ahead of Wal-Mart's annual meeting," said
, Chief Corporate Governance Officer for the Trust. "We believe that increased transparency around the use of clawbacks is critical to fostering a culture of compliance while stressing that misconduct by senior employees is unacceptable. We are pleased that others agree."
Wal-Mart has relatively strong clawback policies, under which the company may recoup incentive compensation if it is discovered that the recipient engaged in behavior that is deemed contrary to the best interests of the company or otherwise failed to comply with the company's standards of conduct. However, Wal-Mart has not provided information on whether or not any of its clawback policies – some of which have been in place for over a decade – have been used.
* * *
UAW Retiree Medical Benefits Trust is the largest non-governmental payor of retiree health care benefits in
the United States
, providing health care benefits to over 800,000 UAW retirees and dependents.
Coalition members and filers of Proposal No. 8 at Wal-Mart include: UAW Retiree Medical Benefits Trust; Connecticut Retirement Plans and Trust Funds; Amalgamated Bank LongView Funds; First Swedish National Pension Fund; Third Swedish National Pension Fund; Fourth Swedish National Pension Fund; F&C Management Ltd.; and Illinois State Board of Investments. Together, the funds owned over
in Wal-Mart stock as of market close on
May 10, 2013
SOURCE UAW Retiree Medical Benefits Trust