Walmart's annual meeting faces 7 charged shareholder proposals

The big picture: A few years ago, consumers, shareholders and employees increasingly expected companies to take stances on social issues as part of their corporate strategy.

• But even as some companies dig in on commitments to diversity, equity and inclusion (DEI), many others have lifted their foot off the pedal as backlash over DEI and environmental, social and governance issues become more politically charged.

This week's gathering may be a peek at how Walmart will navigate this evolving environment.

State of play: The company's 2025 proxy statement outlines 11 proposals for shareholder voting today.

Seven were submitted by outside investors to which the company suggests votes of no. The company explains its rationale for each in its proxy statement.

• Loosely categorized, the external proposals break down into three groups of equity, environmental and governance:

Equity — Organization United for Respect calls for a third-party audit to analyze impact on and make recommendations for the company's racial equity impact.

• A proposal from Bowyer Research asks for a report evaluating how Walmart "oversees risks related to discrimination against ad buyers and sellers based on their political or religious status or views."
• The National Center for Public Policy Research, on the other hand, wants a report "explaining why it apparently took an external threat of public exposure of Walmart's policies and practices for Walmart to revise its Diversity, Equity, and Inclusion initiatives." The company said it would phase out the term and some related programs in November.

What they're saying: "We'd already moved to the term of 'belonging' over a year ago, and moved away from DEI," corporate affairs EVP Dan Bartlett told Axios in January.

• "We aspire to be a place where, regardless of your politics or regardless of your views on cultural issues, you still feel like you're welcome and seen at Walmart."

Environmental — Green Century Capital Management calls for the company to report how it can "can increase the scale, pace and rigor of its sustainable packaging efforts."

• The National Legal and Policy Center wants the company's board to examine Walmart's plastic production and packaging policies through the lens of non-biased research.

Governance — Oxfam America seeks a report on the steps the company's taken since 2019 to "monitor and manage human rights risks related to workplace health and safety."

• A group on behalf of the AFL-CIO requests that Walmart commission a third-party study of its policies for "law enforcement information requests relating to the use of medications" by employees and customers, and disclose the results.

Between the lines: The request follows a growing patchwork of state laws governing the sale and distribution of certain medications — notably for contraception, abortion and gender-affirming treatments.

The four internal proposals related to the board of directors, its executive compensation program, ratification of its accounting firm and approval of its stock incentive plan.

• The retailer suggests shareholders vote yes for all four.

The bottom line: Shareholders generally vote the way the company recommends.

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