Walmart Chooses Company Insider As New CEO
By Sam Lewis
Long-time employee of world’s largest retailer takes the helm amid bribery scandal
In the wake of a bribery scandal — where Walmart paid bribes in Mexico to speed building permits and gain other favors — the company’s Mike Duke, has stepped down from his leadership position. The retailer’s board of directors wasted no time naming a new leader, choosing an internal candidate, Doug McMillon, who served as Sam’s Club’s president and CEO since 2006.
McMillon’s story with Walmart is a lengthy one, paying his dues to rise to the top of the company ladder, and is rarely told nowadays. Originally from Jonesboro, AK, he began working for Walmart in the summer of 1984 as an associate in a distribution center. McMillon received a B.S. in business administration from the University of Arkansas and an MBA from the University of Tulsa. In pursuit of the MBA, McMillon rejoined Walmart at a Tulsa, OK location. Most of his 22 years with Walmart have been spent merchandising for the company’s U.S. segment, with expertise in apparel, general goods, and food. Then in 2006, McMillon was given the leadership reins at Sam’s Club along with taking over Walmart International. Now, at age 47, McMillon has found himself leading the charge for the world’s largest retailer.
A lengthy tenure with the company was likely the factor that enabled Walmart’s board to choose McMillon as Duke’s predecessor. It also likely gave him a leg up against other potential candidates, like Bill Simon who runs Walmart’s U.S. division. It also doesn’t hurt that McMillon has proven record of creating growth in both Sam’s Club and Walmart’s international segment. However, the international growth bears a scar of the bribery scandal which has yet to fully play out.
The allegations of bribery came three years after McMillon was appointed head of Walmart International in Jan 2009, when McMillon succeeded Duke in that position also. McMillon has played a role in the company’s response to the bribery scandal. While Walmart execs met with investors in October, he said Walmart now has a chief compliance officer along with an anti-corruption leader in each of its global markets. “One of the things we're doing right now as we speak is making sure that we've got all the right resources to make this a world class compliance effort within Wamart,” say McMillon. “We've hired new people and we've realigned people into this global structure. And we now have through those efforts over 1,000 people that work full time on compliance.”
Walmart appointing McMillon as CEO at 47 represents a shift in how companies view retail in a sense. Themes of retail have shifted from large, chain stores to smaller, local shops in addition to the continually escalating move into e-commerce and omnichannel shopping options. McMillon’s relative youth, along with his track record of generating growth, tied to his lengthy tenure and devotion to Walmart could be an omen of transition to untraditional retailing for the traditional retailer.
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