Voting is over

Walmart Wails Wage Woes: Down 3% By Monday Close?
25 february 2015

"Don't make me come down there, Miss Walton." (IMAGE courtesy EWTN News)

Continuing the trend of political pressure pushing down hard on the upward pressure of corporate profits of megacorps like McDonalds (NYSE: MCD), Dominos Pizza (NYSE: DPZ), and of course--once again--WalMart (NYSE: WMT), the massive corporation last on the list I just mentioned had already announced over the course of the past week that they would be raising the wages of their workers up to between $9-10 an hour over the coming year, to square the company with the national trend at the state and federal level of upping the minimum wage of workers up to anywhere to the high $9's to $12-ish per hour. 

But for some, the plan announced by WalMart is simply not enough. Connecticut Treasurer and pillar investor in the company Denise Nappier who runs an office that supervises approximately $40 million worth of Wal-Mart shares in state pension and trust funds is not satisfied with the wage hike plan. 

Nappier is pushing forward to implement a plan that ties executive compensation to measurements of low level staff motivation, or "employee engagement."

This constitutes pure disappointment for investors and the corporate heads of the monster corporation, who had hoped that the already announced wage hike, a staggered set of increases over the next year, would neutralize outside pressure and scrutiny of the giant's wage practices. However, WalMart is merely one of a number of large companies, as mentioned above, that are part of an ongoing dialogue that is kept in motion by humanist and progressive forces concerned with more than simply driving up the stock price of the company and increasing profits for shareholders. They are observing the viability of living with dignity on the wage paid by these companies, and are not satisfied by token gestures engineered to simply stave off the unwanted attention paid to what hardworking souls in the warehouse and on the floor are paid. As an additional example, quoting the above linked article,

In another proposal, a group of Catholic nuns is urging Wal-Mart to disclose a comparison of the pay of top executives to the median store employee wage and explain changes in the gap over time.

Today the stock of Walmart is down a little more than one half of a percent-- .61 points down or .72% loss.

Although the Walton family has a firm grip on procedural votes on such proposals via their majority ownership in company stock, the pressure often increases via the bad public relations via vote-down. 

As these pressures towards wage realignment are not likely to abate, what say you, Traders? Take today's close--down another three points by this coming Monday close?

Whip out your tea leaves and show me your stuff!

4 people

Walmart Wails Wage Woes: Down 3% By Monday Close?

Voting is over
Waiting for
the right answer
1 person
3 people