Wal-mart CEO Gets $22 Million Bonus, Workers Still Get Nothing.

March 12, 2007

And workers still get nothing but crap. From Wal-Mart Watch:

Let me get this straight. In 2006, Wal-Mart tallied its worst same-store sales growth in 27 years. The company’s stock price has remained stagnant for years. And, public opinion has taken a serious turn for the worse.

The company has slashed labor costs by capping the salary if its employees, reduced the number of its employees receiving company health care and implemented a series of additional business practices to cut labor costs.

Given all that, the company’s board rewards Scott with a $22 million bonus? Something is seriously wrong with this picture.

And then from the “real” news…

From The AP:

BENTONVILLE, Ark. — Wal-Mart Stores Inc. has awarded it chief executive officer a stock bonus worth $22 million for reaching revenue targets, the retail giant disclosed Friday in a regulatory filing.

The compensation committee of Wal-Mart’s board voted Wednesday to make the award to Scott and also grant shares to other executives.

Scott’s salary and bonus for 2006 was $5.23 million. His total compensation for that year was, excluding restricted stock awards, was $15.7 million. The $22 million bonus was for Wal-Mart’s 2007 fiscal year.

This really bothers me on so many levels. Here they have all their employees doing all the hard work and they are having hours cut and health care taken away, and they all get nothing at all. The head honcho gets TWENTY TWO MILLION DOLLARS? Not $1 million, not $500,000…but TWENTY TWO MILLION dollars? Meanwhile most of his employees are living on what amounts to minimum wage, working part time, trying to survive, and he has the balls to accept 22 million in bonus?

It’s a sick world sometimes.

Filed in: Wal-Mart

About the Author:

After a varied past of being a test driver for automotive television programs, a Hollywood studio lackey, and an online media sales director, David is now the publisher and editor of The Good Human. In his spare time he rides motorcycles, drinks good beer, and builds stuff in the garage. You can follow him on Twitter at @thegoodhuman or G+ at Google
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Comments (3)

  1. Craig Mackintosh says:

    Don’t worry too much though David. The sole purpose in the life of those many thousands of employees, their ultimate joy, is to bring wealth and prosperity to Scott and his family.

    It is sick, and upside down. The more he squeezes people – suppliers, staff, customers, the more profit he makes, and the bigger bonus he gets. That’s a great motivation huh?

  2. Leo says:

    It’s so obvious, David. Scott is actually that much more valuable and productive than the average Wal-Mart employee!

    Let’s say the average worker makes $20K … that means that Scott made about 2,000 times as much as them. Obviously, he must be worth 2,000 employees by himself! He works 2,000 times harder, and produces 2,000 times as much work, as the average worker. In fact, the next time Wal-Mart has to make cuts, I suggest they fire 2,000 employees and just let Scott handle the 20-30 empty, employee-less stores. He’s a dynamo. He can handle that kind of workload. Obviously, he must be able to do that with that kind of salary and bonus.

    I bet the board gets a kickback from Scott for awarding him that bonus.

  3. David says:

    Duh, of course Scott is worth more than the average person, I mean…he is the head honcho that sits in nice office while the employees just slouch around the store!

    And I am sure they get something out of it, otherwise what would be the reason? I cannot wait until I can run a company badly and get rewarded for it. Its like the guy at Exxon – $400 million dollar severance package for doing crappy at his job. Amazing.