Topic > How the Walmart scandal highlights the role of activist investors

Walmart has often been targeted by various audiences. Employees have filed class-action lawsuits accusing retailers of sex discrimination. But Walmart has taught that they can always count on their shareholders. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original Essay Walmart is not working properly with its investors as many investors are not satisfied with the way the company is addressing the problems. During 2012, at an annual shareholders meeting, investors protested the lack of corrective action regarding corruption allegations. Forbes also cited investors as very vocal groups and how they change leadership. Additionally, the company's final shareholder vote for the board of directors showed unprecedented dissent towards key executives and board members following the allegations. Thirty-two percent of nonpreferred shares voted to oust the CEO, 31% voted against the chairman, and 38% voted against the former CEO. These percentages can show how bad the relationship between the company and its investors is after the case. Even during the 2013 shareholder meeting, investors were still upset about the ongoing issue. Walmart, due to corruption allegations, is unable to adequately communicate the statement of concern to investors, which has led to many difficult relationships between them. Under the laws of most states, executives are then chosen on the off chance that they run unopposed. In general, do it. In most open partnerships, leaders have no opposition, which influences the conclusion of an inevitable end product. Typically, executives who do not receive the lion's share of support submit an impromptu letter of abdication that is rarely acknowledged. These “zombie bosses” live on despite their figurative demise on behalf of investors. The lack of genuine investor interest in the executive choice process can be seen from the results. The leaders chosen by the council often require considerable dignified variety. Women and minorities in most cases of large open organizations have disappeared or are subject to an informal breaking point of perhaps a couple. Furthermore, these sheets tend to state compensation packages for directors that are unbalanced relative to the compensation of different representatives and often inadequately linked to actual execution. The remote possibility that investors could submit a competing slate would almost certainly profoundly affect how companies are run. . Officials aware that they might actually lose their business would have a much stronger motivation to focus on the interests of long-term investors. Furthermore, granting the privilege to investors would impose almost no additional cost on the organization. Please note: this is just an example. Get a custom paper from our expert writers now. Get a Custom Essay When the Los Angeles Times reported that the company received a temporary restraining orders against the protesters were their first step toward taking action on the situation. They also made sure not to allow selected protesters onto private property in the State of Arkansas. They did so to engage in activities such as picketing, patrolling, parades, "flash mob" demonstrations, management of.