Boston, MA 06/12/2014 (wallstreetpr) – Bonuses for CEOs – Wal-Mart Stores Inc. (NASDAQ:WMT)
It was not an earth-shattering event for the American multinational retailer Wal-Mart Stores Inc. (NASDAQ:WMT). In the recent meeting of shareholders in Bentonville, Arkansas, a significant 35% of the shareholders of the companylodged a strong protest against bonuses for Mike Duke, the former Chief Executive Officer whose tenure ended in November 2013 and Dough McMillon, the current President and Chief Executive Office of the company. Over 40% of shareholders, not from the Walton family group, also tried their best to seek a replacement for Rob Walton, the Chairman of Wal-Mart. Perhaps the protests are justified. Market analysts predict that Wal-Mart Stores Inc. (NASDAQ:WMT) is expected to under-perform the S&P 500 considering a 30-days investment horizon. The stock is showing 1.65 times more volatility than S&P 500.
Will Reed Hastings ofNetflix Inc. (NASDAQ:NFLS)lose his role as Chairman?
Reed Hastings, the Chairman of the on-demand internet streaming media provider Netflix Inc. (NASDAQ:NFLS) seems to have rubbed the shareholders on the wrong side. It was more than apparent, when over 52% of the shareholders clamored for him to lose his role as the Chairman of the company, by casting independent votes to support their stand. This is despite the fact that under Hastings’ leadership Netflix has actually discovered its identity amongst its users, by creating amazing original content in its products. But the shareholders are outraged that Hastings is not letting them change directors from the board. Netflix has a rule that allows an uncontested director nominee to retain his seat with just one ‘for’ vote. The company does not have the majority vote rule in its bylaws.
Nothing however is going to change
Despite the protests by the shareholders of Wal-Mart Stores Inc. (NASDAQ:WMT) and Netflix Inc. (NASDAQ:NFLS), there may not be any actual changes in these companies. The controlling management of the companies would decide and do as they please. The stock markets currently are at all-time highs and protests by shareholders in these times lack the necessary impact and may not bring about the changes they desire, even if justified.
