RESOLVED

That the Board of directors prepare a report, at reasonable expense and omitting proprietary information, on the Company’s plan to address the gender and racial pay gap within its workforce. At a minimum the report should include:

• Relevant details about the Company’s strategy, programs and policies planned or in place;
• Assessment of program effectiveness, through the disclosure of the median pay gap between employees from historically equity-seeking groups, and other relevant metrics.

Supporting Statement

The #MeToo and the racial justice movements have intensified the widespread public debate about workplace equity. According to the latest data compiled by the Census Bureau, women in the United States are paid 82 cents for every dollar paid to men. The wage gap experienced by women of colour is even more significant. Furthermore, research suggests that the Covid-19 pandemic has widened the existing gap.

As uncertainties generated by the pandemic plague precarious workers, companies with a large employment footprint like Walmart are under greater scrutiny and are exposed to critical reputational risks. These risks can also affect companies’ ability to maintain a stable, well-trained and skilled operation and workforce.

Companies that effectively manage gender and racial pay equity are in a better position to attract, retain and promote talent successfully, particularly women and racialized workers. In a competitive marketplace like the retail industry, workforce diversity and equity can be differentiators for sales and financial returns. In fact, research shows that companies with the strongest racial and ethnic diversity are 35 percent more likely to have financial returns above their industry medians. Further, for each 10 percent increase in racial and ethnic diversity on the senior-executive team, earnings before interest and taxes (EBIT) increase by 0.8 percent.[1]

In recent years, Walmart has dominated the debate on fair pay in the retail sector – largely with negative media attention. Media reported extensively on employees’ efforts to seek gender pay equity. These attempts include significant class action and individual lawsuits. In addition, research shows that Walmart lags behind its peers. A growing number of large retailers are taking proactive steps to end pay disparities, including Costco and Starbucks.  

Despite employees’ and shareholders’ concerns, Walmart has not indicated its intention to address pay disparities among its workforce. By clarifying its plans to identify and address any gender or racial pay gaps and by disclosing its pay equity goals and key metrics, the Company will allow investors to assess the effectiveness of the strategy, policies and programs it has implemented as well as the merit of any related investment.

We urge shareholders to support this proposal.

[1] https://www.mckinsey.com/business-functions/organization/our-insights/why-diversity-matters