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Why is One of The World's Top CEOs Stepping Down?

November 21, 2008 10:15 AM

Ap_mike_duke_081121_main ABC's Dan Aranall reports from New York: The world's largest retailer says that CEO Lee Scott will step down on February 1, 2009 and be replaced by Mike Duke.

Duke is currently an executive in Wal-Mart's International division, and spent the early part of his career with Federated & May Department stores. Scott will remain with the company as chairman of the board.

"Wal-Mart is very well positioned in today's economy, growing market share and returns, and is more relevant to its customers than ever," said Duke in a company press release announcing the change. "Our strategy is sound and our management team is extremely capable. I am confident we will continue to deliver value to our shareholders, increase opportunity for our over 2 million associates, and help our 180 million customers around the world save money and live better."

The move –- a surprise –- ends Lee Scott's rather uneven tenure as CEO. Investors had been disappointed with the stock performance during his years at the helm. Scott also dealt with a few public missteps, attempting to move the discounter to higher fashion brands and publicly fighting with unions looking to organize the company's massive workforce.

Many people believe Duke's selection is an indication that the company will be looking overseas for future growth. Duke leads Wal-Mart's international efforts right now.

Duke BIO: Duke joined Wal-Mart in 1995 and is the company's top international executive today. He has served as president and CEO of Wal-Mart Stores Division (USA), executive vice president of administration, executive vice president of logistics, senior vice president of logistics, and senior vice president of distribution. Prior to joining the company, Duke had 23 years' experience in retailing with Federated Department Stores and May Department Stores. Duke graduated from Georgia Tech with a bachelor’s degree in industrial engineering. He serves on the Board of Directors of the US-China Business Council as well as CIES-The Food Business Forum, and is on the Executive Board of Conservation International's Center for Environmental Leadership in Business. Duke also serves on the University of Arkansas Board of Advisors.

November 21, 2008 | Permalink | Share | User Comments (2)

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With the economy it is inevitable that it will hit every buisness, first ones to be blamed is CEO's.

WalMarts CEO's have a dual sword at their throat. The Economy and a New President that hates the Company.

Now that man is not Stupid, very wise move.

Posted by: seah | Nov 21, 2008 11:26:51 AM

Wal-Mart is wealthy beyond old Sam's dreams. A company can shoot for the moon, and eventually you get there.
That doesn't mean the company isn't doing well. What do they want? Venus?

So, Wal-Mart might go overseas for future growth. They may as well.
EVERYTHING in Wal-Mart is made from China (and such places).

Americans want to double-dip, as well.
They want union jobs at places like Wal-Mart WHILE keeping the prices very low.

That does not compute. Something's got to give.

Posted by: tcb | Nov 21, 2008 12:08:47 PM

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