Management

Wal-Mart is refusing to budge an inch after critics bashed the retail giant for overpaying its executives while they mishandled a probe into charges that it systematically bribed officials in Mexico. Proxy adviser Institutional Shareholder Services (ISS) "misconstrues" Wal-Mart's executive compensation policies, the discounter said in a regulatory filing last Thursday. ISS based its analysis on information from CtW Investment Group, a union-backed group that's long opposed Wal-Mart, the filing charged. The Bentonville, Ark., retail giant said its pay practices are "intended to closely align the interests of our named executive officers with the interests of our shareholders."

Earlier this month, a dozen or so gun rights activists walked into San Antonio-area outlets of Sonic and Chili's with long rifles strapped across their backs. In both instances, managers of the burger joint and Tex-Mex chain acted quickly, requesting that these members of Second Amendment advocacy group Open Carry Texas leave their premises. After Mother Jones found and posted videos of these two incidents, Sonic and Chili's reacted, although both stopped short of joining Starbucks, Chipotle and Jack In The Box in asking customers to leave guns at home.

Wal-Mart Canada has confirmed it laid off hundreds of employees across the country earlier this month in a move to rework its management structure. The Arkansas-based retailer said it eliminated 750 jobs — which it says represented less than 1 percent of staff — after testing a new management structure in select stores. As part of the changes, Wal-Mart Canada says 1,300 associates were promoted to more senior roles and about 200 store managers were added.

Ross Stores is promoting President and Chief Merchandising Officer Barbara Rentler to CEO. Rentler, 56, succeeds Michael Balmuth, who had served as vice chairman and CEO since 1996. Rentler had served as president and CMO of Ross Dress for Less since 2009. The transition is part of the Dublin, Calif., company's succession plan. Ross Stores Inc. announced in August 2012 that the 63-year-old Balmuth would step down from the CEO post on June 1, 2014 and become executive chairman.

They were both reared in cold Midwestern towns: Steinhafel in Milwaukee and Johnson in Edina, Minn. They both worked at Target: Steinhafel joined the Minneapolis-based retailer in 1979 as a merchandising trainee, and Johnson had been the chain's vice president of merchandising until he left in 2000. They both suffered an economy that continues to impoverish retail customers.

Target's board, seeking a new CEO after pushing out Gregg Steinhafel yesterday, is under pressure to do something it's never done before: hire a leader from outside the company. Target is working with recruitment firm Korn Ferry, signaling that it's not focusing on internal candidates, said Carol Spieckerman, a retail consultant. The company also has increasingly looked outside for other executive roles, including its latest chief information officer and chief marketing officer. Potential candidates for the top job include HSN Inc. CEO Mindy Grossman, Bon-Ton Stores chief Brendan Hoffman, Gap head Glenn Murphy and Victoria's Secret CEO Sharen Turney.

Abercrombie & Fitch said on Wednesday that it had settled a proxy fight with the activist hedge fund Engaged Capital, agreeing to add four new independent directors to its board. Under the terms of the agreement, the retailer said that it would nominate Bonnie R. Brooks, the vice chairman of the Hudson's Bay Company; Sarah M. Gallagher, a former executive at Ralph Lauren; Diane L. Neal, the former chief executive of Bath & Body Works; and Stephanie M. Shern, a former global director of retail for Ernst & Young.

Burberry Group said Christopher Bailey started as chief executive officer after Angela Ahrendts formally departed the U.K. luxury-goods maker. Bailey, who retains his job as chief creative officer, had been named to the CEO role on Oct. 15. He succeeds Ahrendts, whose resignation became effective yesterday. Bailey, 42, has a tough act to follow. Under Ahrendts, who led Burberry for almost eight years, sales more than doubled and the shares gained more than threefold. Ahrendts left to run retail operations at Apple.

Companies affiliated with Carol's Daughter filed for Chapter 11 bankruptcy protection last week in connection with the beauty brand's move to close most of its stores. CD Stores LLC, formerly known as Carol's Daughter Stores LLC, filed its Chapter 11 petition with the Manhattan bankruptcy court, as did the individual companies behind Carol's Daughter stores. Court papers show that CD Stores is 100 percent owned by parent company Carol's Daughter Holdings LLC (the parent company didn't file for bankruptcy). The petition reported assets and debts each in the $1 million to $10 million range.

The Wet Seal, a specialty retailer to young women, announced that it will begin winding down its Arden B brand. Arden B currently operates 54 mall-based stores and an e-commerce web site. John D. Goodman, Chief Executive Officer, stated, "This was a difficult decision that followed a comprehensive review of the business and market dynamics. We would like to thank all of our Arden B team members for their hard work and dedication to the brand, and also extend our gratitude to our loyal customers."