Few fireworks expected

Target was in the spotlight last week, and now it is Wal-Mart’s turn to address shareholders, as the company’s annual meeting is slated for this Friday in Northwest Arkansas. The event doesn’t offer the drama of the high-profile proxy fight, which culminated last week for Target when shareholders elected to retain the company’s incumbent directors who were up for re-election. If anything, this year’s meeting for Wal-Mart has the potential to be rather dry for several reasons. There will be the usual number of shareholder proposals from various activists who use the annual meeting of the world’s largest retail as platform from which to promote their agenda, be it animal cruelty, gender equality or executive compensation. Wal-Mart is used to that. Beyond those distractions, however, Wal-Mart is expected to face few criticisms of its business (the stock price is another story), since the company is performing well relative to other retail companies, has never been stronger financially or more generous with the dividend ($1.09 a share annually) it pays shareholders.

The broader issue of the economy, and a new slate of executives who are presiding over the event for the first time in new roles, also hint at a more subdued affair. Historically, Wal-Mart’s shareholders’ meetings have tended to be over-the-top, extravagant productions headlined by big-name entertainers and characterized by boisterous celebrations. That approach could be viewed as insensitive given that Wal-Mart is seen as prospering this year in large part because its, “save money, live better,” message is resonating more loudly with an increasing number of price-sensitive consumers. The tone of the meeting is also likely to be influenced by senior executives who are in new roles. Mike Duke is presiding over his first shareholders’ meeting as president and CEO, following a promotion early this year, as is Doug McMillion who was named president and CEO of Wal-Mart International after holding that same position with Sam’s Club. New in his role as president and CEO of Sam’s Club is Brian Cornell, the former president and CEO of Michaels. The three men are expected to address shareholders this Friday, as is vice chairman Eduardo Castro-Wright who oversees Walmart U.S.