UAW Retiree Medical Benefits Trust, $300 Billion Investor Coalition, Call For
Transparency At Walmart On Use Of Compliance-related Clawbacks
DETROIT, April 29, 2013
DETROIT, April 29, 2013 /PRNewswire/ --In an effort to increase transparency
around Walmart's compliance practices, the UAW Retiree Medical Benefits Trust
("Trust") is leading a $300 billion global investor coalition calling on 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. The coalition's request is included in Walmart's 2013 Proxy Statement
as Proposal No. 8, Request for Annual Report on Recoupment of Executive Pay,
and will be considered by investors at the company's June 7, 2013 annual
"The coalition's proposal asks Walmart to disclose if and when its existing
clawback and recoupment policies are actually used," says Meredith Miller,
coalition leader and Chief Corporate Governance Officer for the Trust. "The
disclosure requirements would apply to senior executives covered under one or
more of the company's policies. To date, Walmart has not committed to
disclosing any actual clawbacks to its shareholders."
Walmart has relatively strong clawback policies in place, 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 failed to comply with the company's standards of conduct. In
its 2013 proxy statement, Walmart states that it has included both compliance
objectives in its annual cash bonus for several senior executives and a
clawback of the bonus if these objectives are not met.
"Walmart reports in its proxy that the CEO could be subject to a
compliance-related clawback of his cash bonus. However, it is unclear under
what circumstances the clawback would apply," says Miller. "The investor
coalition is asking Walmart to provide these disclosures for the previous year
and annually thereafter to its shareholders."
The investor coalition views disclosure by Walmart of the use of its clawback
policies as critical to fostering a corporate culture that emphasizes
compliance and ethics. Disclosure educates employees about the company's
expectations and reinforces codes of conduct. By asking Walmart's board to
tell investors if, in fact, it has used the clawback, investors are calling on
the directors to be accountable to its owners on important compliance issues.
The coalition's proposal does not presume the outcome of any current or future
investigations, nor does it force Walmart to claw back pay.
"The cross-border composition of the global investor coalition signifies the
importance of transparency and accountability in board governance of the
world's largest employer," states Miller.
Coalition members and filers of the proposal 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.
The $52.4 billion 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.
SOURCE UAW Retiree Medical Benefits Trust
Contact: Patricia McCarthy, Public Relations Consultant, UAW Retiree Medical
Benefits Trust, C: (313) 418-4155, O: (313) 882-9200, email@example.com
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