Walmart Executive Compensation Tied to Fulfilling Your Needs
After being lambasted by the media and consumers for allowing shelves to remain empty, Wal-Mart (NYSE:WMT) has gotten its independent auditors back on the job. The company responsible for keeping tabs on store practices has instituted a strategy of tagging all essentials with green dot stickers so managers know what merchandise should remain in stock.
When it comes to the nation’s largest retailer, there are few secrets. Bloomberg pointed out the emptying shelves — presenting a decaying, mismanaged picture to customers and employees alike — in a series of reports earlier this year. Wal-Mart management got the memo and heard the complaints of customers everywhere. When the news emerged of a 1.4 percent decline in sales in this year’s first quarter, Wal-Mart executives decided to get the inventory back on the shelves by any means necessary.One of their steps was to propose a new plan, tying executive compensation to keeping the stocks shelved. This proposal is going to be voted on in early June at the company’s annual meeting.
That has brought out the green dot brigade. Acosta, which used to perform secret audits at Wal-Mart stores nationwide, had been given a break from its duties before the outrage over empty shelves surfaced. Wal-Mart has been expanding its operations, adding stores and warehouses, while cutting back on staff. Hence the stocking problem and the movement of customers to competitors like Target (NYSE:TGT). Acosta is now back on the job and is sticking green dots next to any item management considers essential. This strategy is a departure from the blind audits of the past.