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Wal-Mart Names Duke To Chief Executive Job

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The Associated Press

Published: November 22, 2008

NEW YORK - Wal-Mart Stores Inc., the world's largest retailer, unexpectedly announced Friday that its chief executive will retire in February and be replaced by the head of its international division.

The surprise change in leadership right before the crucial holiday season comes as Wal-Mart has roared back to success as people looking for bargains shop more at discounters. Still, the company faces hurdles ahead amid slowing growth in the United States, and analysts say the decision to tap an international executive serves as a testament that the company sees its future growth oversees.

Bentonville, Ark.-based Wal-Mart said Mike Duke, 58, vice chairman of its international division, will take the reins from Lee Scott, 59, effective Feb. 1. Duke also becomes a member of the board of directors immediately.

Scott, who joined Wal-Mart in 1979 and became president and CEO in 2000, will continue as chairman of the executive committee of the board until January 2011, according to Wal-Mart spokesman Dave Tovar. He will also serve as an adviser to Duke until 2011.

During his tenure, Scott faced increasing scrutiny, particularly from union-backed groups over issues from environmental concerns to wages and health care, which critics say have been too skimpy. The negative publicity had depressed the company's stock price for two and a half years and made the company the poster child for bad corporate behavior.

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