Shareholders Will Probably Hold Off On Increasing Walmart Inc.'s (NYSE:WMT) CEO Compensation For The Time Being

Key Insights

• Walmart's Annual General Meeting to take place on 5th of June
• CEO Doug McMillon's total compensation includes salary of US$1.51m
• The total compensation is 144% higher than the average for the industry
• Walmart's EPS grew by 15% over the past three years while total shareholder return over the past three years was 142%

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Under the guidance of CEO Doug McMillon, Walmart Inc. (NYSE:WMT) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 5th of June. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Walmart

How Does Total Compensation For Doug McMillon Compare With Other Companies In The Industry?

At the time of writing, our data shows that Walmart Inc. has a market capitalization of US$781b, and reported total annual CEO compensation of US$27m for the year to January 2025. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.5m.

For comparison, other companies in the American Consumer Retailing industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$11m. This suggests that Doug McMillon is paid more than the median for the industry. Furthermore, Doug McMillon directly owns US$496m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 17% of total compensation out of all the companies we analyzed, while other remuneration made up 83% of the pie. It's interesting to note that Walmart allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Walmart Inc.'s Growth

Walmart Inc. has seen its earnings per share (EPS) increase by 15% a year over the past three years. Its revenue is up 4.2% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Walmart Inc. Been A Good Investment?

We think that the total shareholder return of 142%, over three years, would leave most Walmart Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Walmart that investors should think about before committing capital to this stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.