Hello, and welcome to the 2025 Annual Shareholders Meeting of Walmart Inc. Please note that the meeting is being recorded. A general Q&A session will be conducted following the adjournment of the formal meeting. You may submit a question at any time by clicking on the Submit Question button on your screen. Walmart would like to remind you that some of the comments today may contain forward-looking statements. Additional information about this is included among the meeting materials available on your screen. It is now my pleasure to turn the meeting over to Greg Penner, Chairman of the Board of Directors of Walmart. Mr. Penner, I now turn the meeting over to you.
Thank you, and good morning, everyone. It's my honor as Chair of the Walmart Board of Directors to welcome you to our 55th Annual Shareholders Meeting. We appreciate you joining us today. The results our team delivered over the last fiscal year demonstrate the strength of our business model and the dedication of more than 2.1 million associates. Against the backdrop of an evolving retail landscape and a dynamic external environment, Walmart remains uniquely positioned to serve our customers and members by staying true to our purpose: to help people save money and live better, and our commitment to innovation. Our business continues to grow even as we invest in technology, supply chain automation, and our associates to deliver growth, expand operating margins, and improve returns.
As we look toward the future, we are confident in our strategic direction and ability to build a stronger, more resilient company, creating long-term sustainable value for all of our shareholders. All of the nominees standing for election to our Board of Directors have joined our virtual meeting. Also joining online are representatives from Ernst & Young, Walmart's independent accountants. The inspectors of election today are from Broadridge Financial Solutions. Based on their report, a majority of the shareholders entitled to participate in the meeting are represented online. We have a quorum and may proceed with the business portion of the meeting. Therefore, our meeting is officially called to order. It is now 8:32 A.M. The polls are open and will close after the presentation of the last shareholder proposal. Only shareholders who held shares as of April 11th, 2025, the record date for this meeting, are entitled to vote shares.
If you have already voted your shares, there is no need to vote again unless you wish to change your vote. If you would like to vote your shares or change your vote, you may do so while the polls are open by following the instructions on your screen. Now, I would like to acknowledge the director nominees, including myself, who are up for reelection this year: Cesar Conde, Tim Flynn, Sarah Friar, Carla Harris, Tom Horton, Marissa Mayer, Doug McMillon, Bob Moritz, Brian Niccol, Randall Stephenson, and Steuart Walton. Thank you all for your willingness to continue to serve our company. Next, I've asked Walmart President and CEO Doug McMillon to share an update on the company's priorities. Rachel Brand, our Corporate Secretary, will take us through the formal business of the meeting. Doug?
Thank you, Greg. Good morning, everyone, and thank you for your interest in our company. I'm excited to share another strong set of results. Last fiscal year, total revenue grew 5.1% to $681 billion, and operating income grew 8.6%. Operating cash flow was strong at $36.4 billion, and return on investment improved by 50 basis points. All three business segments had a good year. We continue to, one, grow sales by serving people how they want to be served in that moment, whether they want to shop in a store, pick up an order, or have it delivered. Two, grow profit faster than sales. We're scaling higher-margin businesses while investing in our associates and keeping our merchandise prices as low as possible in today's environment. Three, improve our ROI even as we make investments to strengthen our company.
We are a people-led, tech-powered, omnichannel retailer dedicated to helping people save money and live better. In the U.S., the average wage for hourly associates has grown to over $18 an hour and is 28% higher than it was five years ago. Walmart U.S. store managers earned $249,000 on average last year, and more than half earned bonuses of $100,000 or more. Our highest-performing store managers earned more than $500,000. A truck driver can now make $115,000 in their first year. More than 860,000 associates now have retirement savings in our 401(k) plan, and over 535,000 hold shares in our stock purchase plan, which is up 11% since the 3-for-1 stock split last year. More than three-quarters of those who participate in our 401(k) and stock purchase plan are hourly associates.
We're proud to be a ladder of opportunity, and when our associates do well, so do our customers, our members, and you, our shareholders. As it relates to being tech-powered, we're driving innovation and moving faster. We're transforming our supply chain through automation, and we're using AI in exciting ways. We're building a personal shopping agent named Sparky to help customers with everything from weekly shopping to party planning. We're using AI to help our merchants identify opportunities and diagnose issues faster. Our developers now use coding tools that saved millions of hours last year. As it relates to being omnichannel, we serve people however they want to shop. In the U.S., we'll reach 95% of the population with delivery in under three hours by the end of the year. Same-day pharmacy delivery is now available in the U.S. Sam's Club U.S.
Now has same and next-day shipping offers from clubs. Our e-commerce assortment at Sam's is broader than ever. In several of our international markets, customers are receiving their e-commerce orders in minutes. We're becoming known for convenience, just as we're known for low prices. We're continuing to remodel stores and clubs around the world and open new ones. We are making a difference in communities. Last year, in the U.S., we donated 752 million pounds of food, spent $1.1 billion with veteran-owned businesses, and continued our long-standing commitment to hiring veterans and military spouses, over 500,000 hired since 2013. As I close, I want to thank our associates for being servant leaders. They're working hard, learning new capabilities, and doing everything they can to help people save money and live better. I also want to thank our shareholders for their continued support. We like our position. We like our plan.
We really feel like we're just getting started. Thank you again for your interest in our company. Now, I'll turn it over to Rachel Brand, our Corporate Secretary, to take us through the proposals.
Thank you, Doug. We will now move to the meeting's formal business and conduct a Q&A session after the meeting adjourns. 11 items will be presented for a vote today. The first four items are the company proposals. They appear in the proxy statement as proposals one through four. The first proposal is the election of 12 directors. Information about each director nominee can be found in the proxy statement. The second proposal is to ratify the appointment of Ernst & Young as the company's independent accountants for the fiscal year ending January 31, 2026. The third proposal is a non-binding advisory vote to approve the compensation of Walmart's named executive officers. The vote on this proposal is advisory, but the board will consider the results in evaluating our executive compensation program. The fourth proposal is to approve the Walmart Inc.
Stock Incentive Plan of 2025, details of which can be found in the proxy statement. Now, we will proceed with shareholder proposals. This year, seven were included in our proxy statement. We always appreciate hearing a variety of perspectives from our investors. Shareholder proposals are a distinct process. They are often driven by interest groups who have very little ownership stake and are pressing an agenda unrelated to shareholder value. We have carefully reviewed each proposal, engaged proponents, and shared our fuller responses in the proxy statement. With that context, we will now turn to the proposals. The first is proposal number five in the proxy statement. It was submitted by Segal Marco Advisors on behalf of AFL-CIO Equity Index Funds. Carin Zelenko is presenting on behalf of the proponent. She pre-recorded her presentation, which we will now play.
My name is Carin Zelenko. I'm Director of Capital Strategies for the AFL-CIO. I hereby introduce proposal number five submitted by the AFL-CIO Equity Index Funds. The proposal requests Walmart's Board of Directors commission an independent third-party assessment of the company's policies regarding law enforcement information requests relating to the use of medications by the company's customers and employees. Federal and state laws regarding the sale and distribution of medication may conflict or have contested application. For example, a conflict of laws may arise regarding certain medications related to contraception, abortion, and gender-affirming treatments. While our company is not exempt from law enforcement requests related to these medications, we believe that Walmart can enhance trust with its customers and employees by adopting and disclosing robust data privacy and data collection minimization practices.
We believe, for example, that Walmart's policy should clarify that the company will respond to law enforcement requests for sensitive personal health information only when legally required to do so, that the company will notify customers when their personal data is shared with law enforcement unless prohibited from doing so, that the company extend data deletion rights for customers nationwide, and that the company provide greater transparency for shareholders and customers on the volume of law enforcement requests by country and state and the company's response to them. Competitor companies like CVS and Amazon have already incorporated many of these commitments in their data privacy policies, and we believe Walmart would benefit from the same.
For these reasons, we believe that an independent third-party assessment of the company's policies regarding law enforcement information requests relating to the company's customers and employees' use of medications would be beneficial for the Board of Directors in the exercise of its fiduciary duties. In addition, disclosing the results of the assessment will provide greater transparency for the company's shareholders, customers, and employees. For these reasons, we urge you to vote for this proposal. Thank you.
Thank you, Ms. Zelenko. The board recommends a vote against this proposal for the reasons explained in the proxy statement. The next proposal is number six in the proxy statement. It was submitted by Green Century Capital Management, Inc. Frances Fairhead-Stanova is presenting on behalf of the proponent. She pre-recorded her presentation, which we will now play.
My name is Frances Fairhead-Stanova. On behalf of Green Century Capital Management, I am presenting proposal number six, asking Walmart to increase its sustainable packaging efforts, including by stopping its use of misleading recyclability labels and increasing its disclosure on plans to decrease its plastic footprint. The social and environmental costs of plastic pollution are estimated at between $300 billion and $600 billion per year, including the health costs, as well as the cost of ocean cleanup and lost marine ecosystem services. Although recycling has often been elevated as a solution to the global plastic pollution, experts agree it is reducing plastic that is key. In recognition of the need to address plastic-related risks, Walmart has disclosed an aspiration to achieve zero plastic waste, acknowledging the need to embrace the concept of a circular economy, which moves away from a take-and-dispose approach to one that values reuse and regeneration.
Walmart discloses a goal to reduce virgin plastic use in its private brand packaging by 15% by 2025. Its use of virgin plastic in its private brand packaging has increased by 6% between 2020 and 2023. Studies show that consumers increasingly want to be offered products in reusable packaging and that reusable packaging is one of the most effective ways to reduce plastic pollution. Walmart does not disclose information on recent efforts to provide consumers with products in reusable packaging. Meanwhile, Walmart uses misleading recyclability labels, such as the store drop-off label on its plastic bag and film packaging, which instructs consumers to bring this packaging back to bins in stores to be recycled. Media investigations have shown that plastic deposited in these bins largely ends up in landfills and incinerators, and the recycling rate for this kind of plastic in the U.S. is only about 2%.
It is illegal to make misleading claims about the recyclability of packaging in California, and other states are considering similar laws, exposing Walmart to legal and regulatory risk. Misleading recyclable labeling and insufficient action to reduce its plastic footprint also puts the trust of consumers in Walmart at risk. In conclusion, plastic pollution is a rising concern among regulators, consumers, and investors. Plastic-related regulatory, legal, and reputational risk may be mitigated by developing a packaging sustainability plan that emphasizes plastic reduction, scaling up of reuse programs, and accurate labeling of materials that are feasibly recycled. We therefore urge a vote for proposal number six.
Thank you, Ms. Fairhead-Stanova. The board recommends a vote against this proposal for the reasons explained in the proxy statement. The next proposal is number seven. It was submitted by the National Legal and Policy Center. Paul Chesser is presenting on behalf of the proponent. He pre-recorded his presentation, which we will now play.
There's been a lot of discussion recently about the effect of tariffs on American businesses and consumer prices. Walmart is a top U.S. company of concern due to many families' dependence on the company for low-cost household goods and groceries. Walmart received quite a backlash after its CFO said last month that the higher tariffs will result in higher prices. President Trump said Walmart should eat the tariffs. Walmart then put out a statement that said, "We'll keep prices as low as we can for as long as we can, given the reality of small retail margins." However, when it comes to tariffs, for years, Walmart has imposed its own tariffs on itself. And its customers, many of whom struggle economically, pay the price, though do shareholders in terms of reduced profits. This tariff that Walmart imposes on itself is called a plastics tariff. Let me explain.
Walmart is the top driver in retail due to its omnipresence as to how vendors manufacture products and packaging so they can earn Walmart's business. When it comes to plastics, Walmart is at the forefront in demanding that recycled content goes into and that recyclable content is the result from the packaging of many of the items it sells. These can be items such as food sold in its in-store bakeries or delis or store-brand items sold in its pharmacy or supermarket. About 60% of Walmart's sales are from food and beverages. Thus, when Walmart demands a packaging vendor to include 25% recycled content in a plastic clamshell container for its bakery goods, it significantly adds to the cost of that container and thus to the price of their product. Worse, it does not improve the environment. It instead worsens it because the required amount of plastic input is greater.
A test we ran for one such container using an online app sponsored by Walmart that calculates different outcomes based on recycled content inputs showed far more plastic pollution was generated as well as greenhouse gas emissions by putting recycled content into the package versus using virgin plastic material. You can see the results on our website, nlpc.org. The crowning blow is the extra cost. In the sample we ran, the cost to Walmart for that package is 58% higher to produce for having recycled content versus a version without recycled content. In other words, this is a 58% plastics tariff that Walmart imposes on itself. As we all know, somebody has to pay for it, either shareholders or customers, mostly. Please vote for proposal number seven to oppose plastics tariffs at Walmart.
Thank you. The board recommends a vote against this proposal for the reasons explained in the proxy statement. The next proposal is number eight in the proxy statement. It was submitted by the organization United for Respect and various co-filers. TaNeka Hightower is presenting on behalf of the proponent. She pre-recorded her presentation, which we will now play.
Hello, Walmart shareholders. My name is TaNeka Hightower, and I'm a Walmart associate currently based in Memphis, Tennessee. I'm presenting proposal eight on behalf of the people like me who keep our doors open every single day. Proposal eight states, "Shareholders request Walmart conduct a third-party independent racial equity audit analyzing Walmart's adverse impacts on Black, Indigenous, and People of Color communities and to provide recommendations for improving the company's racial equity impact. Input from employees, customers, and racial justice labor and civil rights organizations should be considered in determining specific matters to be analyzed. A report on the audit prepared at reasonable cost and admitting confidential and preparatory information should be published on Walmart's website." You might wonder why are workers calling for a racial equity audit again in 2025? Because last year, Walmart quietly dismantled key diversity, equity, and inclusion programs without accountability, without explanation.
If Walmart leadership truly valued racial equity, they shouldn't run from transparency. They should welcome it. What are they hiding? For the past seven years, I've worked tirelessly in a Walmart store, and I've seen who gets promoted and who doesn't, who gets steady hours and who gets sent home, and who gets asked for their opinions and who gets ignored. The patterns are clear. White workers move up. Black and brown workers stay stuck. This isn't anecdotal. It's systematic. Nationwide, more than half of Walmart associates are women and people of color, yet the majority of leadership roles still go to white men. In fact, Walmart's own data shows significant underrepresentation of Black workers in management. This is not uncommon, and there is meaningful change that needs to happen.
Walmart is owned by the wealthiest family in the world, yet billions were built on the backs of workers, the vast majority of whom are people of color. As the single largest private employer of Black workers in the U.S., Walmart's policies don't just influence what happens inside its stores. They shape the lives of millions of working families across the country. Walmart doesn't just sell products. It sets standards. Other retailers follow its lead. Here's the bottom line. Walmart is failing to address the need of a diverse workforce. So shareholders, this is your moment.
You have the power to demand better, not just for the company's image, but for the people who keep its doors open every single day, for the workers who smile at customers while quietly wondering how to make rent, for the mothers who skip meals so their children can eat, for the fathers who work overtime and still fall behind. Walmart can afford to do better, and we can no longer afford for them not to. I urge you to vote yes on proposal eight. Thank you.
Thank you. As explained in the proxy statement, our people strategy includes hiring from a broad pool of qualified candidates, removing unnecessary degree requirements, providing skills, training, and educational opportunities to associates, and promoting from within. We do not make employment decisions on the basis of race or gender. Our publicly reported data clearly demonstrates that Ms. Hightower's claims are unfounded. The board recommends a vote against this proposal. The next proposal is number nine in the proxy statement. It was submitted by the National Center for Public Policy Research. Stefan Padfield is presenting on behalf of the proponent. He pre-recorded his presentation, which we will now play.
My name is Stefan Padfield, and I am the Executive Director of the Free Enterprise Project, which is part of the National Center for Public Policy Research. The National Center is the proponent of proposal nine, which asks Walmart for a report on delays in revising DEI initiatives. Why do Walmart shareholders need such a report? First, while Walmart deserves credit for revising Walmart's DEI initiatives and thereby significantly reducing the number of divisive, dangerous, value-destroying, and arguably illegal initiatives being advanced in the name of DEI, it is nonetheless concerning that it took public exposure of these initiatives for Walmart to act despite the fact that Walmart was or should have been aware of the risks associated with these initiatives for years.
In fact, the proponent of this proposal filed prior proposals in 2024 and 2023, raising related concerns, and commentators and related events have been sounding an alarm as far back as 2020 and even earlier. Perhaps most concerning, reports indicate that material information regarding Walmart's practices were new to some executives. This suggests a problematic lack of oversight and/or the existence of insulated ideological echo chambers within Walmart interfering with effective oversight. Second, there is reason to be concerned that value-destroying DEI initiatives are merely being repackaged by Walmart rather than eliminated, as appears to be the case at a number of other name-brand corporations. Corporate governance missteps revealed by the requested report would help prevent a recurrence of the underlying problem. Meanwhile, Walmart's opposition statement can fairly be described as non-responsive. Not one sentence directly addresses the issue raised by our proposal.
At the same time, the opposition statement seemingly confirms that Walmart continues to divide employees on the basis of race and sex in the name of "belonging." Walmart directs shareholders to its online ESG reporting, which conveys the type of obsession with race and sex that directly conflicts with uniting employees around providing great products and services. As just one example, the People webpage uses the phrase "People of Color" 14 times, and rather than telling us how hiring and promotion are tied to merit, a word that does not appear at all, we are presented with full-page graphs that suggest all that matters is meeting race and sex representation goals. This is supposed to convince shareholders that Walmart is distancing itself from divisive DEI?
Regardless of today's vote, which will inevitably be tainted by conflicted asset managers and proxy advisors, if Walmart's managers are serious about their fiduciary duties, they will implement our proposal for the good of Walmart and its unconflicted shareholders.
Thank you. The board recommends a vote against this proposal for the reasons explained in the proxy statement. The next proposal is number 10. It was submitted by Oxfam America, Inc. and various co-filers. Sister Susan Mika is presenting on behalf of the proponents. She pre-recorded her presentation, which we will now play.
I'm Sister Susan Mika, Director of Corporate Responsibility for the Benedictine Sisters. I'm here to present ballot proposal number 10 on behalf of Oxfam America and co-filers. Our proposal calls on Walmart's board to report to shareholders on the governance measures it has implemented to more effectively monitor and manage workplace health and safety risks. Importantly, we recommend the report include how the board oversees policies affecting Walmart's worker injury rate, the provision of paid sick leave, and overall health and safety, and whether executive compensation arrangements incentivize responsiveness to these concerns. These critical matters of corporate governance are of significant relevance to investor decision-making. I have worked closely with Oxfam and other investors in regularly engaging Walmart. In spite of years of engagement on its worker health and safety, Walmart needs to take additional meaningful steps to adequately address and mitigate these risks.
Walmart reported the second highest rate of severe workplace injuries among U.S. employers between 2015 and 2022, for example, and was listed on the National Council for Occupational Safety and Health Administration's Dirty Dozen Unsafe Companies for 2024. These serious health and safety concerns are generating reputational, legal, and operational risks. Media reports indicate that there is negative public perception of the company in light of allegations of these working conditions. From repeated OSHA fines for health and safety violations to allegations of denied pregnancy accommodation, Walmart's working conditions continue to capture the attention of media, of government authorities, and workers, highlighting the insufficiency of Walmart's existing corporate governance measures and the importance of board oversight. Boards are increasingly expected to exercise robust oversight over matters of human capital, including worker health and safety. Leadership from a company's highest levels is critical to taking employee well-being seriously.
A leading law firm recently characterized human capital management as a board-level issue with vital strategic and risk oversight implications and said boards should enhance their oversight of the issue, including through linking executive pay incentives to better human capital management. Unless and until Walmart's board takes a more proactive role in fulfilling its governance function and oversight duties to the company and its investors, we fear these reported working conditions will persist, as well as subsequent risks to investors. Vote for proposal number 10. We thank you for your time.
Thank you. Management and the board are committed to providing a safe and healthy environment for associates. Walmart's record is strong. We perform significantly better than the industry for distribution and fulfillment operations, and our injury and loss time rates are similar to the U.S. retail industry. Of course, no injury is acceptable, but the vast majority of our injuries are categorized as being more minor, such as cuts and scrapes. If something significant does happen, we provide paid sick leave and a Centers of Excellence program that provides care from leading medical centers. Unlike the organization cited by the proponents, we calculate and report on injuries using standard government-sanctioned methodologies and publish our results annually so shareholders can judge for themselves how we're doing. The board recommends a vote against this proposal. The final proposal is number 11. It was submitted by Bowyer Research, Inc.
Rick Figueroa is presenting on behalf of the proponent. He pre-recorded his presentation, which we will now play.
My name is Rick Figueroa. I'm here on behalf of proponent of proposal number 11. This proposal asks Walmart to commit to political neutral advertising policies. More and more companies, from Meta to McDonald's, are moving away from taking political sides in their business practices. Why? Because political neutrality is becoming the best practice. It avoids controversy, protects brand reputation, and focuses on business, not politics. Unfortunately, Walmart was a member of GARM, the Global Alliance for Responsible Media. That group worked to keep advertising money away from platforms that label as promoting disinformation or hate speech. In reality, this often meant targeting right-leaning media outlets like the Daily Wire or platforms like Spotify for hosting voices like Joe Rogan. It wasn't about responsibility. It was about politics. GARM used enormous amounts of ad spending to push activist goals, and it backfired. There was legal and political pushback.
Elon Musk even filed a lawsuit against GARM, targeting its platform, X. Eventually, the group was shut down, and an antitrust nominee for President Trump's DOJ said GARM was probably a form of illegal collusion. The damage is done. Shareholders are right to expect Walmart to take a step back from partisan ad and commit to neutral neutrality going forward. That's what proposal 11 is about. It's about a chance for Walmart to rebuild trust with shareholders. Focus on what matters: fairness, neutrality, and smart business. Please vote yes on proposal number 11.
Thank you. The board recommends a vote against this proposal for the reasons explained in the proxy statement. This concludes all the matters to be presented for shareholder consideration at the meeting. It is 9:01 A.M., and the polls are now closed. Based on the initial report from the inspectors of election, the preliminary voting results are as follows. Each director nominee has been elected by a majority of the votes cast. Each of the other company proposals has passed, and the shareholder proposals failed to receive a majority of the votes cast and therefore did not pass. The preliminary voting results will be announced in a press release later today, and the official results will be disclosed in a filing with the SEC. The 2025 annual shareholders meeting is now formally adjourned.
We will now pause briefly before moving into a Q&A session moderated by Kary Brunner, Senior Director of Investor Relations.
Hi, I'm Kary Brunner. We will now take some time to respond to questions submitted through the virtual meeting platform. Senior leadership of the company is available to respond to questions, and we will answer as many questions as we can during this time. Substantially similar questions will be grouped together and responded to collectively. Okay, the first question is, did anything about Walmart's steady stock price rise over the last year surprise you? If not, is there anything out of the ordinary or change in existing practices that you did to facilitate it?
This is Doug McMillon. Before asking John David Rainey, our CFO, to respond, I'll just quickly say that our focus is on building a stronger business over time, and the strategy that we've had over the last few years is our focus. I'm really encouraged by the progress that we're making at executing that strategy, and I think it's demonstrating results over time, not just one quarter or one year at a time.
I would echo Doug's comments. There are many factors that can influence a stock price. Of the items that we can control, though, and influence, we would argue probably that the biggest single factor are the benefits that we're seeing from the years of thoughtful strategic investments that we've made in the business: investments in associate wages, investments in price, investments in our technology infrastructure, and our supply chain automation. These investments have translated into an increased value proposition for our customers and members. We've always been known for low prices, but we're increasingly being known for convenience. As Doug mentioned, very shortly, we'll soon serve 95% of the U.S. population in less than three hours. Internationally, we're increasingly providing e-commerce orders to customers in minutes instead of hours. Notably, we believe that these advantages that we have are sustainable. They're durable.
A data point that I would provide to support that is, in our most recent quarter, we announced that we've achieved a profit in our e-commerce business, and we are very excited about that. Our business is designed to keep prices low for customers and members, and we will do that in any environment, but we are increasingly providing a level of convenience for them that is making customers and members come more to Walmart. In any period, there are going to be factors that influence a stock price, but what we tell the team here is we need to focus on what we can control, and that is serving our customers and members in the very best way that we are capable of. If we do that consistently, period after period, we believe the stock price will continue to take care of itself.
Okay, thank you. The next question from the shareholder is, do you still support the LGBTQ community, and do you still sell merchandise for Pride Month?
Donna Morris, our Chief People Officer, may want to comment as well, but I would just say what we've been trying to do all along and what we continue to try and do is to be a Walmart for everyone. We literally want everyone to be excited about shopping with us, and we want everyone that works for the company to be excited about being here, and that's what we'll continue to work towards.
Absolutely. Thanks, Doug. Yes, our focus continues to remain on creating an environment for all of our associates and our customers that are part of the community and part of other communities. We are happy to serve the LGBTQ+ community and happy Pride Month to those that are part of the community.
Thank you. The next shareholder question is, thank you for rolling back divisive, non-fiduciary policies and reconsidering partnerships with corporate activist groups. Ordinary American shareholders, thank you for these changes. Can we expect to see a continued focus on political neutrality and fiduciary duty at Walmart?
As I mentioned a minute ago, our goal is to bring people together. We want to serve everyone, and we literally do serve an incredibly diverse set of customers, Sam's Club members, and have a very diverse set of associates, as you know. We will continue to focus on trying to make all of them, as I mentioned earlier, be excited about being part of the company. We want to do things that strengthen our business. That will be our focus.
Thank you. We also received a number of questions related to the current tariff environment, touching on the products that have been impacted, questions on how we're managing increased costs, when are prices expected to return to normalcy, and do we think, how do we think about the ongoing investments in the company and capital expenditures, associate wages, et cetera, in this environment?
We're really excited about the future of the company as it relates to our business model and how we've been changing it over the years. The room that we've had to invest in lower prices, to invest in wage increases, is really important to the business, and I think over the years we've been doing a good job of investing for the future. We're really pleased that our average wage for hourly associates has grown to over $18 an hour and is 28% higher than it was five years ago. We will continue to invest in associate wages and continue to do the best job we can of keeping prices low. That's what we're born to do. It's in our DNA.
We believe in everyday low prices, and in this environment, we're going to do what we always do, which is to provide the very best value for customers that we possibly can. Pricing is dynamic. We've got situations where prices are coming down. There are some other situations because of cost pressures, in some cases because of tariffs where prices are going up. We are going to do our best to manage our mix, manage inventory, do things like avoid unnecessary markdowns, avoid waste, manage all of our other costs in a way that we can provide the very best value. We will pay close attention to what's happening item by item. We will pay close attention to what's happening with customers, and we will pay close attention to what's happening with our competition to make sure that we are continuing to offer that relative value to customers that we've been offering.
Okay, thank you. We also received several questions regarding the influence of proxy advisors, ISS, and Glass Lewis. What is management and the board's opinion on ISS and Glass Lewis?
We'll leave it to others to sort out what's best as it relates to proxy advisors. We take input from everybody, listen to multiple stakeholder groups, including those groups, and that's what we'll continue to do.
Okay. At this time, we've answered all the questions that are in the queue. So we, again, will conclude our Q&A session at this time. Thank you for your interest in Walmart and have a good day. Operator, we'll now turn it back to you.
Thank you. This now concludes the meeting. Thank you for joining and have a pleasant day.
The host has ended this call. Goodbye.