Walmart is reducing the number of board members to 12 people in order to remain in line with US corporate standards. America’s largest retailer hopes the move will enable it to make better and quicker decisions and respond more rapidly to market changes.
According to Standard & Poor’s 500 index and the Spencer Stuart Board Index, the average board size in US retail was 10.8 last year.
The restructuring of Walmart’s board sees the retirement of the youngest son of Walmart’s Founder Sam Walton, Jim Walton, 67, after 11 years on the board. His son Steuart has been put forward for a seat.
In addition, a member of former President Bill Clinton’s cabinet, Aida Alvarez, retail veteran Roger Corbett and Mike Duke, who was previously Walmart’s President and Chief Executive for 5 years, will be stepping down. Both Alvarez and Corbett have reached their decade tenure on the board.
Duke’s departure, two years after resigning from the CEO position is also in line with company standards.
“The changes we are making are designed to maximize our effectiveness as we adapt to ever-evolving customer requirements,” James Cash, the board’s Lead Independent Director, said in a statement.
The restructuring will take place in June.