One of the first things investors want to know about any company is who is in the driver’s seat. For a company like Wal-Mart Stores Inc. (NYSE: WMT), there has been a steady hand guiding the company for years. Now that is about to change. Rob Walton has been the chairman for so long because his family controls over 40% of Wal-Mart stock. Obviously, Wal-Mart does not wish to endanger its future and appoint a random outsider to run its empire. In fact, Wal-Mart is keeping its leadership in the family.

The company announced that Walton will be stepping down as chairman of the board, effective at the end of the shareholder meeting on Friday. Walton’s successor is his son-in-law, Greg Penner, who will be assuming the role that Walton had held for the past 23 years. Penner was appointed to the vice chairman position in the past year.

However, the 70-year old Walton will not completely leave the company. He plans to stay on as a director, a role he has held since 1978.

For a little background: Greg Penner is married to Carrie Walton Penner, the daughter of Rob Walton. He manages Madrone Capital Partners, an investment firm affiliated with S. Robson Walton and other Walton family members.

The company also stated that it would realign its board committees so that most of its independent directors would have the chance to serve on at least two committees. Ultimately this realignment would help to ensure that the governance committees have independent directors.

A few analysts have recently made calls on this retail giant:

• Nomura reiterated a Buy rating but lowered its price target to $85 from $95.
• BMO Capital Markets reiterated an Underperform rating and lowered its price target to $72 from $78.
• Stephens has an Overweight rating, but the firm lowered its price target to $90 from $97.

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In April the Walton family, heirs of founder Sam Walton, announced that the family business, Walton Enterprises, would distribute about 6% of its holdings to a newly created Walton Family Holdings Trust. The Walton family’s stake in Wal-Mart has risen to about 50% as a result of share buyback programs, and the family is satisfied to control the company’s biggest stake without actually owning enough stock to give them actual control.

Shares of Wal-Mart were down about 0.5% at $73.82 midday Friday. The stock has a consensus analyst price target of $80.57 and a 52-week trading range of $72.61 to $90.97.

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