ISS criticizes Wal-Mart's board

Proxy adviser Institutional Shareholder Services Inc. said Wal-Mart Stores Inc. needs a more independent board and recommended that investors oppose the re-election of chairman S. Robson Walton and former CEO Michael T. Duke,

the

Wall Street Journal

reported.

ISS said it was concerned that Wal-Mart hasn’t disclosed which, if any, of its directors may be found responsible in an investigation into alleged violations of the Foreign Corrupt Practices Act. ISS also criticized adjustments to compensation targets and plans that continue to reward executives despite the company’s declining performance, the article said.

ISS recommended a “no” vote on the company’s executive pay practices and support for a resolution seeking the appointment of an independent chairman at the company’s June 6 annual meeting, the

Journal

article said.

“The recommendations are unlikely to have much practical effect given the Walton family’s control over the company,” the

Journal

report noted. (Source:

Wall Street Journal,

May 27, 2014.)