Canadian Pension Plan Investment Board, Texas Teacher Retirement System and Institutional Shareholder Services oppose ratification of the pay of the CEO of Wal-Mart Stores Inc., while Glass Lewis supports it.
The C$278.9 billion ($215.5 billion) CPPIB, Toronto, and $126.6 billion Austin-based Texas fund, plan to vote against the pay packages.
The total pay in 2015 of C. Douglas McMillon, president and CEO, was $19.8 million, up 2.1% from 2014, according to the Wal-Mart proxy statement. The pay of other executives named in the proxy statement in 2015 ranged from $3 million to $11.5 million.
“Overall, the combination of growth goals that vary annually, significant adjustments to incentive metrics, annual goal setting under the long-term plan and the special awards for varied purposes make it difficult to understand the specific connection between long-term strategy and executive incentives and the rigor of the goals relative to payouts,” an ISS report on Wal-Mart said, recommending its clients vote against the executive pay.
Glass Lewis recommends support for the compensation program, saying “the company continues to provide a generous amount of disclosure regarding its pay-setting process.” But the Glass Lewis report grades Wal-Mart's executive pay a “D,” noting “the company has been deficient in linking executive pay to corporate performance.”
The shareholder vote on executive pay is non-binding on the company.
Wal-Mart's annual meeting is June 3 in Fayetteville, Ark.