Wal-Mart Stores Inc. (NYSE: WMT) is doing what we believe they should have done two-years ago. The board of directors has elected Mike Duke to replace Lee Scott as President & CEO of Wal-Mart. The effective date is February 1, 2009.
The board also promoted Eduardo Castro-Wright to vice chairman of Wal-Mart Stores, Inc., effective immediately.
Lee Scott is apparently only going to serve as an adviser for a periodof time. Mike Duke is president of Wal-Mart International, and thecompany will make a successor announcement by the end of the fiscalyear.
Lee Scott was one of our CEO’s To Go, but that was for 2007. He wasessentially bailed out by the recession because the stock neverperformed well under him during the bull market.
Our list of the 10 CEO’s To Go for 2008 saw 7 or 8 of the 10 choices come to fruition.
Update at 9:05 AM EST: Wal-Mart shares are up 1.6% at $51.50 in the pre-market.
Jon C. Ogg
November 21, 2008