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Walmart Executives Exodus After Bribery Scandal

By July, some of the executives who were in the highest positions of Walmart when the bribery scandals surfaced will be out of the company.

Former US Walmart chief administrative officer Thomas A. Mars resigned, former Mexico Walmart general counsel José Luis Rodriguez Macedo Rivera also left, while the current chief executive H. Lee Scott Jr. will step down from the company this month.

These were the people in Walmart who held the highest positions in the company’s management when the bribery controversy swallowed its international division. However, Walmart never pointed out these departures as a means to clean the company from those issues.

Walmart de México was engulfed with scandalous widespread bribery allegations two years ago. It attracted investigations from the United States government and a number of investor lawsuits. The financial outlays of Walmart is now almost half a billion dollars as it tackles internal and external inquiries. These controversies were fuelled when The New York Times published the investigations done on the company’s global operations due to bribery allegations.

There is a complete transformation in Walmart’s personnel and compliance structure as investigations are still pending. Some of the changes were loudly announced, while some were not.

There were some eight senior executives in Walmart from Mexico, Bentonville, India, and Ark that left the company during the late 2011 after The New York Times published the investigations. There is a pattern that can be seen in this exodus of executives. During those two years, Walmart has significantly improved its international compliance program.

The company has increased its compliance staff to 2,000 people in just two years, which is something that is totally against its culture. The company now has a new regulation where potential foreign corruption violations must immediately be reported to the board and the corporate headquarters.

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