Walmart CEO Doug McMillon’s compensation has recently come under scrutiny, with the company’s annual proxy statement revealing that he received a total package of $26.9 million in the last fiscal year. This figure marks a significant increase from the previous year and comprises various components, including a base salary of $1.5 million, stock awards totaling $19.6 million, and other compensation amounting to $5.8 million.
McMillon’s journey at Walmart is a remarkable tale of progression within the company. It began in 1984 when he started with a humble wage job unloading trucks for the retail giant, earning just $6.50 an hour. This early role laid the foundation for McMillon’s ascent through the ranks, ultimately leading to his current position as CEO. Today, he oversees a workforce of 2.1 million employees across more than 10,000 retail stores worldwide, with annual sales reaching a staggering $648 billion.
Despite Walmart’s immense scale, the median compensation for its associates stands at $27,642, representing a modest 1.8% increase from the previous year. In stark contrast, McMillon’s compensation of $26.9 million is approximately 976 times higher than that of the median employee, reflecting the significant disparity in pay within the company.
Comparisons with other retail CEOs further highlight the magnitude of McMillon’s compensation. For instance, Target’s CEO Brian Cornell received a package of $17.6 million, while Costco’s former CEO Craig Jelinek earned $16.8 million. These figures translate to pay ratios of 680 and 336, respectively, underscoring the substantial difference in executive compensation across the retail sector.
The disclosure also sheds light on McMillon’s substantial net worth growth, which amounted to nearly $47.5 million last year after adjustments to account for the fair value of his stock awards. Since 2009, Walmart has paid McMillon a combined total of nearly $163 million for his various executive roles within the company, including his tenure as the head of the international division from 2009 to 2014 and his leadership of Sam’s Club from 2005 to 2009.
McMillon’s significant financial stake in Walmart is further evidenced by his ownership of more than 5.1 million shares of the company’s stock, valued at $306 million. This substantial holding underscores his vested interest in the company’s performance and long-term success.
