What Really Bothers Wal-Mart Stores, Inc. (NYSE:WMT), it’s Customers and its Employees?
The largest employer in America, Wal-Mart Stores, Inc. (NYSE:WMT) late last week released its quarterly earnings where it reported shrinking sales for the third consecutive quarter. The Chief Executive Officer of the Wal-Mart U.S., William S. Simon reasoned the worrisome income levels of its customers; a concern for company’s shrinking sales. The CEO believes that the food, gas and energy prices are taking up a big piece of customer’s budget. As the customers pay are stagnant or declining amidst the recession, Wal-Mart Stores, Inc. (NYSE:WMT)’s sales are dropping.
The Real Concern
The lower wage workers usually working at places like Wal-Mart stores constitute a large portion of Wal-Mart’s customers. Now Wal-Mart Stores, Inc. (NYSE:WMT) being the largest U.S. employer is also a trendsetter for many other employers who employees lower wage workers including the part timers.
Now the retail giant, Wal-Mart offers near bottom wages of $8.80 an hour and refuses to raise the median wage for its part-time and low-wage workers. In case the Wal-Mart increases the wages for low wage workers, millions of employers might also follow the suit to attract or at least to maintain the employees to run their operations.
Revealing the recent finding from its survey, NerdWallet mentioned that Wal-Mart Stores, Inc. (NYSE:WMT)’s CEO to worker retirement ratio was the largest among the ten companies surveyed. Michael T. Duke, the President and CEO of Wal-Mart Stores, Inc. made over 300 times more than typical Wal-Mart manager and around 836 times more compared to the median worker’s salary.
Against the median CEO pension multiple of 239, NerdWallet enlists Wal-Mart’s CEO pension multiple at 6,182. Following the list are McKesson Corporation (NYSE:MCK) – 943; and General Electric Company (NYSE:GE) – 638 among others.
However, Wal-Mart Stores, Inc. (NYSE:WMT)’s spokesperson, Brooke Buchanan countered the study findings explaining that Duke’s retirement package is technically a deferred compensation plan.