Anyone wondering why Walmart is so often the target of angry protests regarding wages and benefits, need look no further than this year’s Forbes 400 Richest People list.
The annual Forbes 400 ranks the wealthiest Americans. Each year the Walton family dominates and 2014 is no exception. It also so clearly illustrates the divide between the wealthiest 1 percent and the those who rely on minimum wage jobs to make ends meets.
Efforts to raise the federal minimum place Walmart in the cross hairs. It’s the nation’s largest employer after the U.S. government and the most visible company to employ hourly paid employees.
And the Walton’s names and faces on these lists don’t do the company any favors.
At No. 6, Christy Walton is not just the wealthiest Walton, she’s the wealthiest woman in the world with a net worth of $38 billion. Christy is the widow of Sam Walton’s son John, and while the bulk of her holdings are in Walmart — she will receive $470 million in dividends after taxes in 2014 — she also has a roughly $1.8 billion stake in a solar energy company.
Jim Walton (No .7) has a $36 billion net worth, $31 billion of it in Walmart stock. Alice Walton is next at No. 9 with a net worth of $34.9 billion.
That both Sam Walton’s children and daughter-in-law have other financial interests doesn’t matter to the average consumer who sees the disparity between those earning minimum wage and those at the top. Nor does it matter that none of the Walton heirs are actively running the company.
Because shoppers don’t distinguish between the children of the company’s founder, his heirs, and the executives in charge, many of whom are paid a good deal less than counterparts and competitive retail chains.
Nor do they know, understand or care about the rules that govern publicly traded companies. Consumers don’t get or care that a company must first serve not just the interest of its shareholders, but also those of Wall Street that dictate an ever upward trajectory in earnings.
The Waltons are merely the wealthiest and most visible, and a logical magnet for consumer displeasure.
Retail insiders don't appear in the Forbes 400 for another 44 slots. Ralph Lauren, who presides over a design empire that happens to include retail stores, ranks number 55. He is closely followed by two billionaires who actually bear the name of the retail dynasties their families founded.
Hank and Doug Meijer tie Ralph Lauren for No. 55 and John Menard, Jr. comes in at 59. Meijer discount department stores and Menard's home improvement centers are two of the largest and last remaining regional privately held retailers in the country. These stores pay comparable, or competitive wages to big box operators including Walmart, but as private companies, they don't draw the protests that Walmart does.
Minimum wage reform is important, but it won't happen if there isn't a national law that forces all companies to raise hourly wages at the same time. Doing the right the thing doesn't work if it hurts the company's competitive stance.
Change will come to Walmart, but when lists such as the Forbes 400 come out with three Waltons near the top, it makes it that much more difficult to convince consumers of that fact.
