Shareholders revolt against Wal-Mart Stores, Inc. and Netflix, Inc.
In the Wild One, Marlon Brando’s Johnny is asked what he’s rebelling against. “Whattya got?” he sneers. An icon was born. Sixty years later American voters and shareholders are still launching largely futile protests against targets of all shapes and sizes. It’s not just House Majority Leader Eric Cantor getting drubbed in a Virginia primary, of all things. In Bentonville, Arkansas more than 35% of Wal-Mart Stores, Inc.(NYSE:WMT) voting shareholders rejected the company’s “say on pay” plan, protesting bonuses for former CEO Mike Duke and current head Doug McMillon. More than 40% of votes not controlled by the founding Walton family pushed to replace chairman Rob Walton.
Serves ‘em right!? After all Walmart has been lagging the S&P 500(INDEXSP:.INX) for as long as anyone can remember. Well then how to explain Netflix, Inc.(NASDAQ:NFLX), where the stock has nearly doubled over the last year. Despite that performance more than 52% of the independent votes cast by shareholders supported replacing Reed Hastings as Chairman. Never mind that without Hastings Netflix would be snail-mailing DVD rentals. Forget Netflix’s almost unfathomable ability to create compelling original content. Netflix shareholders are mad as hell that they don’t have majority vote rule in the company bylaws.
You can see the full “Breakout” segment below: