Wal-Mart Files Objections With SEC Re: Shareholder Sponsored Proxy Resolutions
NEW YORK CITY, NY///February 14, 2006///Attorneys for Wal-Mart have filed objections
with the U.S. Securities and Exchange Commission (SEC) to shareholder- sponsored
resolutions filed by members of the Interfaith Center for Corporate Responsibility
(ICCR) for 2006. The objections are attempts to prevent the measures from being
voted on by the company's stockholders by proxy or in person at the company's
annual meeting. Resolution issues addressed include excessive executive compensation
and the impact on public health services by corporate employees lacking adequate
health benefits. The ICCR investor coalition is a major force in bringing about
advances in corporate governance, corporate social responsibility and economic
justice through organized shareowner advocacy.
"We strongly believe that the issues addressed in the resolutions filed by ICCR members and associates are important to address fundamental problems facing Wal-Mart," stated Sister Patricia Wolf, Executive Director of the Interfaith Center on Corporate Responsibility. "We are committed to using our status as shareholders to address these socially responsible issues to reform corporate policies and practices. These are important policy issues that must be dealt with at the board an shareholder level"
The Wal-Mart Resolutions
Subject: "Compensation Disparity,"- Co-lead filers are Sisters of
the Holy Names of Jesus and Mary, Washington Province and the Benedictine Sisters
of Boerne, Texas - These investors request the Wal-Mart Board of Directors undertake
a study of the total compensation packages provided to company top executives
in comparison to the lowest paid worker and to justify the disparity (that is
estimated at 1,000 to 1, as compared to other large companies which average
431 to 1). The goal is to determine if the total compensation packages of top
executives are excessive -- and whether greater oversight is needed. Investors
are seeking an explanation of why executive compensation is increasing so much
more rapidly than the compensation of other employees.
Wal-Mart's Objection - "…to omit the Proposal…on the grounds that the proposal relates to the ordinary business operations of the Company …in that it focuses on compensation practices and seeks to micro-manage the company by imposing a specific timeframe for preparing a complex report…as to make the Proposal excludable under Rule 14a-8(i)(7)…"
Subject: "Public Health Impact" - Lead filer is the Basilian Fathers of Toronto. To determine the impact Wal-Mart has on Medicaid and State Child Health Insurance Programs in areas where it operate. The resolution states that, "Several recent studies by governments and academics allege that Wal-Mart employees account for a disproportionate share of government services, especially health care." It further notes that "…a confidential memo to our Board leaked to the media in October (2005), found almost half of [Wal-Mart] Associates' [employees'] children are on public assistance or uninsured." The Board is requested to prepare a detailed report on this public policy issue.
Wal-Mart Objection - "…omit the Proposal…on the grounds that the proposal relates to the ordinary business operations of the Company …as to make the Proposal excludable under Rule 14a-8(i)(7)…"
"Shareholders must become aware of Wal-Mart's decision to deny them an
opportunity to even vote on these measures," said ICCR Executive Director
Sister Patricia Wolf. " These are issues that impact the company's reputation
and credibility and many believe the share price. ICCR will be responding to
the SEC."
Notes To Editor:
More detailed information regarding these and dozens of other 2006 shareholder-sponsored
resolutions is available from the Interfaith Center's EthVest (sm), the comprehensive,
on-line, subscription-based, ethical investor database.
About EthVest: Available online to investors by subscription, EthVest is an
ethical investor resource provided by the Interfaith Center on Corporate Responsibility
(ICCR). EthVest contains details on shareholder initiatives by faith-based and
socially responsible investors, including complete texts and voting outcomes
for more than 2,000 shareholder-sponsored resolutions. Resolutions are retrievable
by targeted company name, stock ticker, calendar year of proxy vote and topic
or issue. Resolutions by ICCR member organizations and institutional investors
traditionally focus on nine broad areas of social and environmental justice.
Subscribers also receive periodic updates containing timely news and information
on ICCR shareholder activism, including newly filed resolutions and negotiated
corporate actions.
CONTACT:
Kenneth Cynar (EthVest), GAA, Tel: 516/248-2383 Fax: 516/248-4045, Email: kcynar@accountability-central.com
Sister Patricia Wolf (ICCR), 212-870-2294