Siddharth Kavale
(Reuters) – Walmart said on Thursday that Rob Walton, the longest-serving member of its board and the eldest son of founder Sam Walton, will retire from his role at the retailer at the end of his term on June 5.
Walton served as chairman of the company’s board of directors after his father’s death in 1992, a post he held until June 2015. He was succeeded by son-in-law Greg Penner, who remains chairman of the world’s largest retailer.
Walmart (NYSE:) also disclosed seven shareholder proposals in regulatory filings, including several repeated calls for independent audits of racial equity and human rights impact assessments in its supply chain. The board recommended that shareholders vote against all seven proposals.
During Walton’s tenure as chairman, Walmart increased its sales from approximately $44 billion to $482 billion and became the largest retailer in the United States. Walmart reported $648.1 billion in sales for the most recent year ending Jan. 31, 2024. Much of the company’s success is attributed to persistent inflation, which keeps shoppers shopping at its discount stores.
“His leadership has been critical as we have grown our business over the years,” Penner said in a regulatory filing announcing Walton’s retirement.
Walmart said it has appointed Brian Niccol, chairman and CEO of the Chipotle Mexican Grill (NYSE:) restaurant chain, to replace Walton on its board of directors, which consists of 11 directors. If elected, Niccol would be the fifth new independent director added to the board since 2017, the company said.
The only remaining Walton on the board will be Rob Walton’s nephew Stuart Walton.
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Rob Walton, 79, helped shape some of Walmart’s most important moments, including working on its initial public offering in 1970.
Since joining the company in 1969, he has held several positions, including senior vice president, corporate secretary, general counsel and vice chairman.
According to Forbes, Walton is the 19th richest person in the world with a net worth of $77.4 billion. Much of his wealth is tied to Walton Enterprises and his stakes in sports teams such as the National Football League’s Denver Broncos.
He owned 6.97 million Walmart shares as of Feb. 23, or 0.09% of the total, or about $420 million at Walmart’s Thursday closing stock price of $60.21, according to LSEG.
According to Forbes, the Walton family is the richest family in America thanks to their approximately 45% stake in the retailer.
The seven disclosed shareholder proposals included Walmart’s proposal to establish workers’ compensation policies in an effort to prevent racial and gender inequality, and to eliminate gestation crates in its pork supply chain.