Isis casts votes against Wal-Mart board at AGM

Wal-Mart's corporate governance came under fire at its annual meeting yesterday but the attack failed to dampen the spirits of the 18,000 shareholders and employees who flocked to the University of Arkansas's basketball stadium in Fayetteville.

Wal-Mart's corporate governance came under fire at its annual meeting yesterday but the attack failed to dampen the spirits of the 18,000 shareholders and employees who flocked to the University of Arkansas's basketball stadium in Fayetteville.

Isis Asset Management, a UK fund manger that owns shares in Wal-Mart, joined the growing quorum of investors calling for the US retailer to appoint a "truly independent" chairman. Rob Walton, the chairman, is one of two members of the founding family who sits on the Wal-Mart board.

Isis voted against the retailer's management on several key shareholder proposals, including one calling for backing for a deferred compensation scheme for executives. It also abstained on a resolution relating to the public disclosure of options by race and gender.

The fund manager also lent its voice to calls for the retailer to issue a sustainability report. Karina Litvack, the head of governance at Isis, said: "Wal-Mart is the world's largest private employer but its disclosure is cut-rate.... It doesn't even have a corporate responsibility report."

Lee Scott, the chief executive, defended the company against allegations that it mis-treats its workers by pledging to award pay rises to some of its employees.