FAYETTEVILLE -- Executives with Wal-Mart Stores Inc. told shareholders at their annual meeting Friday that there's a companywide push to become more customer-centric and that the retailer's efforts to connect its physical stores with its fast-growing e-commerce business are paying off.

About 14,000 people packed Bud Walton Arena for the entertainment-heavy event. It was Doug McMillon's first shareholders meeting as president and CEO, and he laid out three core principals for moving the company forward.

"First, we will be a customer-driven company. We've always said the customer is our boss, and we'll make decisions based on how we can serve them better," said McMillon. "Second, we will invest in our people. As we change and grow, it will be our associates who will make the difference. Finally, we need to be at the forefront of innovation and technology. We will lead with urgency to get ahead of change.

"It's all about the customer -- without them, we wouldn't have jobs."

McMillon first appeared with a group of employees in the audience, where he took the first of many "selfies" -- self-portrait cellphone photos.

Throughout the meeting, the photo technique was employed by host Harry Connick Jr., including when the singer posed with McMillon and asked, "Which one of us look more like the CEO?"

As the crowd gathered for the 7 a.m. meeting, a few grumbles could be heard about the early start time. But the mood shifted once the first performer, Pharrell Williams, kicked off the meeting with his hit "Happy."

Williams also performed "Blurred Lines" with Robin Thicke, who also sang "Get Her Back." Singer Sarah McLachlan made an appearance, singing a pair of songs. Country duo Florida Georgia Line also performed, and Aloe Blacc closed out the show with "I'm The Man" and "Wake Me Up."

Wal-Mart employs 2.2 million people in 27 countries and 11,000 stores. In the U.S., the company has been carrying out a plan to build hundreds more smaller-format stores, such as Neighborhood Markets and Wal-Mart Express Stores.

Bill Simon, president and CEO of Wal-Mart U.S., said the Neighborhood Markets' same-store sales grew more than 5 percent in the most recent quarter over the same period in fiscal 2013 and that the stores have seen 46 consecutive months of sales growth.

There was speculation during the week's festivities about whether Wal-Mart would continue to be a retailer with a technology arm or become a tech company with a retailing background. California-based Wal-Mart Global eCommerce is the retailer's fastest-growing business segment.

A point of pride for new Wal-Mart International President and CEO David Cheesewright is that Wal-Mart-owned Asda, a British supermarket chain, has embraced technology ahead of its competitors. Asda's customers can order online and pick up their items at distribution points, not necessarily at stores. By the end of this year, Asda will have almost 600 distribution points.

During the business part of the meeting, shareholders approved 14 director nominees; compensation packages for McMillon and other Wal-Mart executives; and Ernst & Young LLP as Wal-Mart's independent accountants. Most of the director nominees received minimal opposition for their re-election. About 13 percent of shareholders voted against the re-election of McMillon's predecessor, former president and CEO Mike Duke, and 11 percent of voters were against Chairman Rob Walton's re-election.

Before voting was complete, Rob Walton announced the appointment of his son-in-law, Greg Penner, as vice chairman of the board. The 44-year-old Penner, who before joining the Wal-Mart board in 2008 was a financial analyst for Goldman Sachs & Co., will serve as board chairman when Walton is not present.

Board members Lee Scott, a former president and CEO, and Chris Williams retired Friday after a decade on the board. They were not replaced; the board was reduced from 16 to 14 directors.

Three proposals from large shareholder groups, all opposed by Wal-Mart, were defeated. The Walton heirs' ownership in the company is about half of Wal-Mart's 3.2 billion outstanding shares, so they heavily influenced the outcome.

A proposal asking for an annual report on Wal-Mart's corporate lobbying gained just 11 percent of the shareholder vote. Another asking the board to adopt a policy that the board chairman be someone who has not served as an executive officer of the company and who is not affiliated with management received 15 percent of the vote.

The third shareholder proposal asked for an annual report disclosing whether the retailer recouped any incentive or stock compensation from a current or former senior executive if the executive was found to have not acted in the best interest of the company. That measure was favored by 15 percent this year, the second time in as many years that it went before shareholders.

All three resolutions were aimed at gaining more transparency from the company. Wal-Mart continues to spend hundreds of millions of dollars on federal investigations related to allegations that it violated the Foreign Corrupt Practices Act while expanding in Mexico, China, Brazil and India.

"The company is headed in the wrong direction with chairpeople that are biased and not having the best interest of the associates, the customers or the shareholders in mind," said Charmaine Givens-Thomas, a Wal-Mart employee at a Supercenter in Forest Park, Ill., who spoke in support of Wal-Mart designating an independent board chairman.

Protesters made their annual trip to the region for the meeting. OUR Walmart, or Organization United for Respect at Walmart, backed by the United Food and Commercial Workers Union, has unsuccessfully sought for years to unionize the nation's largest private employer. They're calling for higher wages, better and more hours and an end to retaliation against Wal-Mart employees who speak out against the company.

Earlier in the week, Fortune magazine named Wal-Mart the nation's largest company based on revenue -- the second year in a row and the seventh year in 10 that it has held the top spot.

Wal-Mart stock closed at $77.21 Friday in trading on the New York Stock Exchange, down 11 cents from Thursday's close of $77.32. Shares have traded between $71.51 and $80.37 over the past year.

Information for this article was contributed by John Magsam of the Arkansas Democrat-Gazette.

Business on 06/07/2014