Wal-Mart overhauls executive lineup

Drug Store News,  Oct 10, 2005  by Mike Troy

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BENTONVILLE, Ark. -- A major reshuffling of top executives at Wal-Mart clarifies the company's succession strategy and shifts a broad slate of executives into areas of new responsibilities that will influence the company's performance for years to come.

The most significant development involved John Menzer, former president and chief executive officer of Wal-Mart International, and Mike Duke, former president and chief executive officer of Wal-Mart's U.S. Stores division. Both were given the title of vice chairman and essentially switched jobs in a move that clearly positions either eventually to succeed Lee Scott as president and chief executive officer.

The issue of succession planning became an issue for Wal-Mart earlier this year and was spurred in large part by the resignation of Tom Coughlin, the former board member and president and chief executive officer of Wal-Mart Stores USA. His unplanned departure amid allegations of financial impropriety, combined with Wal-Mart's disappointing financial performance and a deteriorating share price, led to speculation prior to the company's June shareholders' meeting that Scott also would resign. Although Scott joked about the rumor at the meeting, the possibility of his departure caused investors and analysts to question the depth of the company's bench strength and raised concerns about who would lead the company were Scott to step down. It now seems apparent that Menzer and Duke are the front runners for Scott's job, and their reassignments clear the way for Scott's eventual departure.

Menzer is the one-time Wal-Mart chief financial officer who was named president and chief executive officer of Wal-Mart International in 1999. He will have responsibility for the Wal-Mart Stores division, including such areas as real estate, logistics, information systems, benefits, financial services, store planning and strategic planning. He will retain the oversight of Wal-Mart's global procurement operations that he was assigned earlier this year.

Duke, former president and chief executive officer of the Wal-Mart Stores division, will assume Menzer's previous responsibilities that are expanding rapidly as Wal-Mart moves into new international markets, such as Central America and Japan.

While the shift involving Menzer and Duke is significant, a number of other moves announced last month will result in major change. They included:

Jim Walton: The youngest son of company founder Sam Walton will join older brother and company chairman Rob Walton on the board of directors. He will continue to serve as chairman and chief executive officer of Arvest bank, and he fills a board vacancy created earlier this year when John Walton died in a plane crash.

Eduardo Castro-Wright: Former chief operating officer of the Stores division Castro-Wright will fill Duke's former position and will report to Menzer. His promotion comes just nine months after he was named chief operating officer of the Stores division after serving as president and chief executive officer of Wal-Mart de Mexico. Castro-Wright now will maintain oversight of U.S. operations and gains responsibility for merchandising, marketing, specialty divisions and new-business development.

Pat Curran: This longtime operations executive will fill Castro-Wright's position as chief operating officer of the Stores division. She previously was one of six senior vice presidents and divisional managers with responsibility for operations in the eastern United States.

Greg Spragg: The former executive vice president of Sam's Club operations was named executive vice president of merchandising and replenishment. He fills the position vacated two months ago when former Sam's head merchant Doug McMillon was named Sam's Club president and chief executive officer.

Greg Johnston: Like Curran, this longtime operations executive, who previously was a regional vice president for Sam's Club, will succeed Spragg as executive vice president of operations. He reports to McMillon.

Mark Goodman: Former vice president of U.S. strategy and operations at McDonald's, Goodman joined Sam's as executive vice president of marketing and membership, responsible for strategy development, marketing, Samsclub.com and enhancing the member experience. He replaces Celia Swanson, who earlier this year joined Wal-Mart's people division as executive vice president of change management.

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