Wal-Mart Plans To Make Its Board Of Directors 'More Nimble' By Lowering Headcount To 12 From 15

Wal-Mart Stores, Inc. (NYSE: WMT) announced after Wednesday's market close that four members of its board of directors – Aida Alvarez, Roger Corbett, Mike Duke and Jim Walton – will not stand for re-election at the company's annual shareholders' meeting. At the same time, the board of directors nominated Steuart Walton for election to the board.

Following the announcement, Wal-Mart's board will be reduced from 15 directors to 12 – a figure the company will keep unchanged moving forward in order to "maximize its effectiveness in supporting the company's strategy."

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Wal-Mart continued that under the new structure, the board will maintain an independent majority at 67 percent. Board members represent an "effective mix of deep company knowledge and fresh perspectives."

James I. Cash, Jr., lead independent director, stated, "The changes we are making are designed to maximize our effectiveness as we adapt to ever-evolving customer requirements. We believe that board refreshment and succession planning are critical and demonstrate good corporate governance practices, but also and most importantly, support our mission to broaden and improve how we are serving customers through both stores and e-commerce."

"The contributions of each of our four retiring board members cannot be overstated, and we wish them all continued success in the future," said Greg Penner, chairman of the board of directors. "With these retirements, we view this as a time to make our board more nimble, while maintaining its independence and further aligning on Walmart's strategic priorities. Our board has the right skills and expertise to support the company's strategy. We continue to believe that the value, quality and diversity of our directors are some of Walmart's greatest strategic assets."