Wal-Mart Stores Inc. appointed Timothy P. Flynn, retired chairman of KPMG International, to its board of directors. Flynn’s service is effective immediately as one of 17 directors and he has been selected as a member of the retail giant’s audit committee.
This change is likely the result of Wal-Mart’s efforts to regain shareholder trust following a bribery scandal in Mexico uncovered in April by The New York Times. Since then a major investigation has ensued into allegations that Wal-Mart’s Mexican business segment spent millions in bribes to speed up the construction pace of its expansion south of the border.
(Update) Wal-Mart disclosed in a federal filing Monday (Aug. 6) Flynn received a stock award of 1,988 shares and annual director pay of $60,000, which were both prorated from his official start date.
"Throughout his career, Tim has demonstrated a level of professionalism and personal integrity that is synonymous with our values at Walmart," said Wal-Mart Chairman Rob Walton. "He's a talented leader whose global insights, strategic vision and expertise in business strategy and governance will be a valuable addition to our company. I look forward to working with Tim and seeing the significant contributions we know he will make."
Walton, is among a handful of directors targeted by disgruntled shareholders who hoped to vote out anyone linked to the bribery scandal. Roughly a dozen shareholder lawsuits are also pending against top management and key board members.
The ongoing controversy didn’t dampen Flynn’s enthusiasm regarding the appointment.
"I have admired Wal-Mart for years and have a deep appreciation for the principles and values of Sam Walton that still guide the company today," said Flynn. "Not only does Wal-Mart have a strong and successful business model, it is also making a major impact by addressing social issues like environmental sustainability and access to healthier food. I am honored to become a part of all this and to see where I can uniquely make a difference."
Flynn, 55, has extensive experience in risk management, financial services and accounting from his 32 years at KPMG International and its predecessors, serving as the company's international chairman from 2007 until his retirement in October 2011.
In this role, Flynn directed an executive team responsible for the firm's management and operations and managed a global board of senior partners responsible for the strategy, oversight and governance of the worldwide network.
Flynn holds a bachelors degree in accounting from the University of St. Thomas, St. Paul, Minn., and is a member of its board of trustees. He serves as a member of the board of directors of JPMorgan Chase & Co. He has previously served as a trustee of the Financial Accounting Standards Board, a member of the World Economic Forum's International Business Council, and was a founding member of The Prince of Wales' International Integrated Reporting Committee.