Two key proxy firms urge shareholders oppose CEO - 13 WTHR Indianapolis

Two key proxy firms urge shareholders oppose CEO

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NEW YORK -

Two leading corporate governance firms are telling Wal-Mart shareholders to vote against certain board members up for re-election next week. They say the directors neglected their responsibility in an alleged bribery scheme in Wal-Mart's Mexican operations.

In separate reports, the proxy advisory firms ISS and Glass Lewis & Co Inc. recommended that their clients not support CEO Mike Duke and former CEO Lee Scott, among others, for seats on the board.

The latest advice comes four weeks after The New York Times reported that Wal-Mart allegedly failed to notify law enforcement after its own investigators found evidence that $24 million in bribes were funneled through its Mexican unit in exchange for speedier building permits and other favors.

ISS said over the weekend that it found The New York Times report "troubling." ISS's 1,700 clients include mostly asset management firms and pension funds.

(Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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