By Siddharth Cavale
(Reuters) -Walmart said on Thursday that Rob Walton, the longest serving member on its board and eldest son of founder Sam Walton, would retire from his position of the big-box retailer at the end of his term on June 5.
Walton served as the company’s chairman of the board of directors after his father died in 1992 and held the post until June 2015. He was replaced by his son-in-law Greg Penner, who remains chairman of world’s largest retailer.
Walmart (NYSE:) also disclosed seven shareholder proposals in the regulatory filing, including some repeated calls for conducting an independent racial equity audit and human rights impact assessment in its supply chain. The board recommended shareholders vote against all seven proposals.
During Walton’s tenure as chairman, Walmart grew its sales from about $44 billion to $482 billion to become the biggest U.S. retailer. In its most recent year ended Jan. 31, 2024, Walmart reported sales of $648.1 billion, much of its success down to persistent inflation leading customers to shop at its discount stores.
“His leadership has been critical as we’ve grown our business over so many years,” Penner said in a regulatory filing announcing Walton’s retirement.
Walmart said it has nominated Brian Niccol, chairman and CEO of restaurant chain Chipotle Mexican Grill (NYSE:) to replace Walton on the board, 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, Steuart Walton.
Rob Walton, 79, helped shape some of Walmart’s most important moments, including working on its initial public offering in 1970.
After joining the company in 1969, he held several roles, including senior vice president, corporate secretary, general counsel and vice chairman.
Walton is the 19th richest man in the world with a net worth of $77.4 billion, according to Forbes. Much of his wealth is tied to the Walton Enterprises and his stakes in sports teams such as the National Football League’s Denver Broncos.
He owned 6.97 million shares of Walmart as of Feb. 23, or 0.09% of the total, according to LSEG data, which amounts to about $420 million at Walmart’s closing stock price of $60.21 on Thursday.
The Walton family is the richest family in America thanks to their estimated 45% stake in the retailer, according to Forbes.
The seven shareholder proposals disclosed included proposing Walmart to set a compensation policy for workers in a bid to prevent inequality and racial and gender disparity, and to transition away from gestation crates in its pork supply chain.
