Walmart: Sam Walton's grandson-in-law new chairman

Kaja Whitehouse | USA TODAY

Show Caption Hide Caption Walmart Gives Chairman Role to Sam Walton's Grandson-in-law Retail chain Walmart Stores Inc. announced Greg Penner, founder Sam Walton's grandson-in-law, will take the role Chairman to the company's board of directors, starting Friday. Penner takes over from Rob Walton, 70, who has been chairman of the board.

Despite pressure to name an independent chairman to the company's board of directors, retail chain Walmart announced Greg Penner, founder Sam Walton's grandson-in-law, has been given the role.

Penner, who previously served as the board's vice chairman, began his new job as chairman at the end of Friday's shareholder meeting, the company announced in a press release. Penner, 45, takes over from his father-in-law, Rob Walton, 70, who has been chairman of the board since 1992 and will continue to serve as a director.

"This transition demonstrates Walmart's commitment to long-term succession planning and keeping high caliber, capable leaders at the head of our company," said Walton, the departing chairman. "Greg's service to Walmart spans more than 15 years, and during that time he has had a significant impact, both as an associate and as a Board member the past seven years."

Proxy advisory firms ISS and Glass Lewis had advised shareholders to vote for a proposal asking that the company install an independent chairman at Friday's shareholder meeting. The star-studded meeting, which took place at the Bud Walton Arena in Fayetteville, Ark., was hosted by actress Reese Witherspoon, and included performances by singer Rod Stewart and Mariah Carey.

Toward the end of the meeting — but before Stewart took the stage to sing his hit tune Forever Young — a Walmart official announced that all five shareholder-sponsored proposals failed. The Walton family owns about half the company's shares.

The proposal for an independent director was filed by the International Brotherhood of Teamsters General Fund, and cited concerns about ongoing investigations into bribery and corruption at Walmart subsidiaries in Mexico, China, Brazil and India; as well as a National Labor Relations Board Administrative Law Judge ruling against the company for threatening unlawful disciplinary action against striking employees.

The bribery probe and other developments "highlight the need for enhanced oversight of WalMart's corporate culture and behavior," the proposal said.

Shareholders that voted for the proposal expressed disappointment in Friday's announcement. "The WalMart board's decision to name Penner as chairman serves the interests of the Walton family at the expense of the company and its outside shareowners, said New York City Comptroller Scott Stringer, who overseas the city's pension funds. The move "is further evidence of the need for an overhaul of the board," he said.