On Monday, Walmart announced that Doug McMillon, 47, would be taking over as CEO in February 2014.
McMillon, the current head of Walmart’s International operations, is replacing Mike Duke, 63, who will be retiring with a $113 million compensation package.
The world’s largest retailer cites sluggish sales as one of the reasons for the change, but there is speculation that company may also be feeling pressure from employees and outside groups, who have been sharply criticizing the company for its poverty-wage policies. However, a new CEO doesn’t necessarily mean Walmart plans to improve their pay plan.
McMillon joined Walmart as a summer associate in 1984 and worked his way up to management.
Still, Doug McMillon does not rise to the top of the Walmart chain without some controversial baggage.
“The U.S. Department of Justice and the Securities and Exchange Commission are investigating allegations of corruption by Wal-Mart executives in its Mexican subsidiaryÃ¢Â?Â¦ and a potential cover-up by executives at its headquarters in Bentonville, Ark.,” according to Bloomberg.
McMillon has not been directly implicated in the alleged corruption scandal that suggests Walmart bribed Mexican officials in exchange for special favors.
Questionable business practices under McMillon’s international division are not limited to Mexico. Walmart is also under scrutiny for allowing unsafe working conditions in a Bangladesh garment factory, where fires have killed more than 1,000 people.
McMillon will be the youngest CEO at the company since its founder, Sam Walton. Whether his age will bring significant improvement to the company’s business practices is yet to be seen.