Dive Brief:
- Wal-Mart Stores CEO Doug McMillon saw his compensation package fall 24% from $25.3 million to $19.06 million in 2014. His base pay was up to $1.2 million from $954,408, but his stock awards fell to $14.6 million, down from $23.01 million.
- That's the result of the retailer’s decision last year to begin tying sales performance to executive cash bonuses. Previously, bonuses were based on operating income.
- The adjustment reflects how the retailer missed its sales targets, according to a regulatory filing Wednesday. "Accordingly, our short-and long-term incentive pay was below target levels,” according to the filing.
Dive Insight:
Wal-Mart Stores' recent decision to increase its hourly wage pales in comparison to the hefty compensation packages of its top executives. While this news hardly leaves McMillon and his team struggling, it is an indication of the retailer’s overall struggles.
The retail giant is facing competition from web retailers and dollar stores that are often closer to town and even sometimes cheaper. Meanwhile, Wal-Mart customers aren't seeing their wages benefit much from an improving economy. The retailer is responding to these pressures by boosting its e-commerce efforts and opening more smaller, more urban stores. But wages will likely have to rise meaningfully before sales can truly recover.