Wal-Mart and The Glass Ceiling Investigating and Proving Gender Discrimination February 2004 Wal-Mart Basics Founded by Sam Walton Headquarters in Bentonville, AR Largest Retailer in the World Largest Private Employer in U.S. $244.6 billion in sales; $6 billion profit in 2003 District Manager Wal-Mart Store Job Pyramid Management Trainee Store Manager Co-Manager Assistant Managers (1 to 7) Dept Heads Cashiers Cart Pusher Greeter Stocker Women in Wal-Mart Management Positions CS M . tM gr De p gr rt M po gm t.T M Su p ra in e e gr M t. As s M gr Co - re M gr . 100 90 80 70 60 50 40 30 20 10 0 St o % Women in Job Percent Women in Store Mgmt & Hourly Supervisors, 2001 Historical Comparison of Women in Management at Wal-Mart and Competitors The Promotion Process Getting Into Management Training No Posting of Openings No Application No Set Selection Criteria No Information on Management Jobs or Qualifications “Tap on the Shoulder” Were Women as a Group Less Qualified for Management ? No education requirement No prior experience required Higher Average Performance Ratings Performance Ratings 2001 4.6 Performance Scores 4.4 4.2 4 Women 3.8 Men 3.6 3.4 3.2 All Hourly Sales Assoc. Job Positions Dept. Managers What the Women Told Us About Promotion. .. No Information About How to Apply Shifting Requirements and Excuses Relocation Requirement – Real or A Pretext? Sexist Attitudes Rhonda Harper, former VP Marketing Sam’s Club Jim Haworth, former Exec. VP Operations Wal-Mart Gender-Based Pay Disparities Average Annual Earnings ** In 2001 Job % of Women in Job Male Salaries Female Salaries Difference in Salaries Regional Vice Pres. 10% $419,400 $279,800 $139,600 District Manager 10 239,500 177,100 62,400 Store Manager 14 105,700 89,300 16,400 Assistant Manager 36 39,800 37,300 2,500 Management Trainee 41 23,200 22,400 800 Department Head 78 23,500 21,700 1,800 Sales Associate 68 16,500 15,100 1,400 Cashier 93 14,500 13,800 700 *Full-time **Including bonuses Data: Richard Drogin Wal-Mart’s Side of the Story No Uniform National Practice Women Not Interested in Management Positions Long and Unpredictable Hours Pay Differences are Very Small Have Made Efforts to Improve Diversity Women Are Happy at Wal-Mart Case is Just Too Big Uniformity and Central Control Every Store Looks and Operates Identically Same Jobs and Job Hierarchy Wal-Mart Cheer at Daily Store Meetings Wal-Mart Culture – 3 Basic Beliefs All personnel policies from Bentonville 24/7 Real Time Electronic Connection Weekly and Daily Reports and Store Visits Heat and Music Was The Alleged Discrimination Intentional? Internal Studies of Pay and Promotion Rates by Gender Diversity Consultant Benchmarking Against Competitors Warnings from the Executive Vice President of Human Resources Knew that Relocation Requirement Had An Adverse Impact on Women Tom Coughlin, Exec. VP and CEO of Wal-Mart Coleman Peterson, Exec. VP for People Division and Member of Board of Directors Don Harris, Exec. Vice President, Operations Stay Tuned Dukes v. Wal-Mart Stores, Northern District of California Class Certification Motion Pending www.walmartclass.com