Wal-Mart Stores Inc. gave its CEO Mike Duke a pay package in 2012 worth $20.7 million, a 14 per cent increase from the year before, according to an Associated Press analysis of a regulatory filing on Monday.
Mr Duke's pay package far exceeds the earnings of his employees, with the average worker making $8.81 an hour, according to estimates. With an average work week of 34 hours, that comes to an annual $15,576 in income.
The company has long been criticized for its low wages but in December Mr Duke offered his assurances that the company, based in Bentonville, Ark., paid a competitive wage.
Taste of success: President and CEO of Walmart Mike Duke, in Dec, received a pay package in 2012 worth $20.7 million
In addition to the outrage over the low wages paid for the giant discount retailer, the company has been battling negative press alleging poor working conditions and inadequate health insurance for employees.
Past research has shown how Walmart spends an average of $3,500 per employee for health care, 27 per cent less than the retail-industry average of $4,800.
Despite the criticism, Mr Duke insists the Walmart is 'serving an emerging middle class' and has defended the treatment of employees.
More...
The perfect place to lie low: Disgraced cyclist Lance Armstrong buys $4.3MILLION hill-top 'fortress' in Texas (and it even has its own rope bridge to make a quick escape)
U.S. employees set to be forced to give bosses their Facebook PASSWORDS
Samsung soars ahead of Apple: Profits set to fall for first time in a DECADE with shares down 40% as iPhone and iPad sales slump
Duke's performance-based cash bonus jumped more than 50 per cent for a year that saw the world's largest retailer posting strong financial results despite a challenging economy for its low-income shoppers.
The pay rise came despite allegations of bribery in Wal-Mart's Mexico operations that surfaced a year ago. The company, based in Bentonville, Ark., has launched its own investigation and is working with government officials in the U.S. and Mexico.
In the regulatory filing, Wal-Mart said that starting this year, it will tie some of Duke's compensation, and that of other top executives, to the discounter's success in fortifying its compliance program. Compensation has been traditionally based on such financial measures as sales and operating income.
More...
The perfect place to lie low: Disgraced cyclist Lance Armstrong buys $4.3MILLION hill-top 'fortress' in Texas (and it even has its own rope bridge to make a quick escape)
U.S. employees set to be forced to give bosses their Facebook PASSWORDS
Samsung soars ahead of Apple: Profits set to fall for first time in a DECADE with shares down 40% as iPhone and iPad sales slump
Duke, 63, has been Wal-Mart's CEO since February 2009. He received a base salary of $1.3 million, up 4 percent from the year-ago period.
Outrage: Walmart has been criticized for paying employees low wages and not offering adequate health benefits
His stock awards of $13.6 million rose 4 per cent. His performance-based cash bonus soared to $4.4 million from $2.9 million, according to documents filed with the Securities and Exchange Commission.
Duke's other compensation amounted to $644,450, up from $377,258 in the previous year. The perks included $101,947 for the use of the company aircraft. He also received $644,450 in above market interest credited on deferred compensation.
For the latest year ended Jan. 31, Wal-Mart posted a 5 percent increase in sales to $466.1 billion. That figure excludes membership fees from Sam's Club. Wal-Mart's operating income rose 4.7 per cent to $27.8 billion in the latest year. Wall-Mart's stock rose 14 per cent in 2012, compared with a 13 per cent gain in the Standard & Poor's 500.
Wal-Mart, which draws nearly 10 per cent of all nonautomotive spending in the U.S., saw its U.S. business come back starting in late 2011 after grappling with an almost two-year slump resulting from mistakes it made in pricing and merchandising.
To re-ignite its U.S. business, which accounts for about 60 per cent of its total sales, Wal-Mart re-emphasized low prices throughout its stores after it strayed by slashing prices on certain merchandise. It also brought back thousands of items that it culled during an overzealous campaign to de-clutter its stores.
But a bribery scandal threatens to slow its business overseas. Wal-Mart has already slowed its expansion plans in Mexico, and last November, the retailer said in an SEC filing that it was looking into potential U.S. bribery law violations in Brazil, China and India. The New York Times first reported the allegations in April 2012 that Wal-Mart failed to notify law enforcement that company officials authorized millions of dollars in bribes in Mexico to speed up getting building permits and gain other favors.The New York Times articles have reported that Wal-Mart officials including Duke were allegedly informed starting in 2005 about bribes being made in the country.