Walton family cements influence at Wal-Mart with new chairman

FAYETTEVILLE, Arkansas (Reuters) - Wal-Mart Stores Inc named Vice Chairman Greg Penner as its new chairman on Friday, replacing his father-in-law Rob Walton and cementing the founding family's influence over the retailer's board.

Penner, 45, has been on the retailer's board since 2008 and was named vice chairman last June, in a move widely seen as setting the stage for him to succeed Walton, the 70-year old son of founder Sam Walton and chairman for the past 23 years.

The change is effective as of the end of the company's annual shareholders' meeting today, near the company's headquarters in Arkansas.

Some investors have pressed for a chairman without ties to the Waltons, arguing that a greater measure of independent oversight is needed for a company that has been dealing with a three-year old probe into alleged bribery overseas.

Penner told the 14,000 workers, shareholders and others in attendance at the meeting that board's structure was sound. After Friday's election, 10 of the 15 directors will be independent.

"Because of our family?s commitment, combined with strong independent director voices, we have a great balance. This is so important right now with the tremendous change all of retail is going through," said Penner, one of three family members on the board.

Both major proxy advisory firms, Institutional Shareholder Services and Glass Lewis, have recommended that investors vote for a shareholder proposal calling for an independent board chairman.

The proposal, submitted by the International Brotherhood of Teamsters General Fund, is on the ballot this year but is not expected to pass because the Walton family controls a majority of the company's stock.

Wal-Mart shares were down 0.5 percent at $73.77.

"This is business as usual for Walt-Mart and the Walton family dominion of the company," said Louis Malizia, assistant director of the Teamsters? Capital Strategies Department. "The claims of long-term succession planning ring hollow and do not fit with the move for greater independence on the board committees."

To strengthen the responsibilities of independent directors, Wal-Mart said that it was realigning its board committees so that most of the independent directors would serve on at least two committees.

Penner started his career as an analyst at Goldman Sachs Group Inc before joining Wal-Mart as a management trainee and served in a number of roles, including as chief financial officer of its Japan operations. Since 2005 he has been a partner at investment firm Madrone Capital Partners, the company said.

He became part of the Walton family through his marriage to Carrie Walton Penner, granddaughter of Sam Walton, who died in 1992.

(Reporting by Nathan Layne in Fayetteville, Arkansas and Sruthi Ramakrishnan in Bengaluru; Editing by Saumyadeb Chakrabarty mand Steve Orlofsky)