Can’t forget the discount card at Wal-Mart…

images-41.jpegWal-Mart Stores (WMT), the company everyone loves to hate, has been garnering some fan mail recently as CEO Lee Scott turns ostentatiously green (tree-hugger green, that is, not Wicked Witch of the West green).

But that doesn’t mean Wal-Mart can’t give us new material to footnote. On Friday it filed this very nice Separation Agreement for John Menzer, its Vice Chairman and Chief Administrative Officer. (Michelle footnoted the related announcement last week.) Though Menzer is only 56, his departure is pegged as a retirement and will become effective on March 1.

I love how the agreement refers to Menzer as an “associate,” as if he were just another humble Wal-Mart employee – which he could be, except for the fact that (a) no one makes him wear a uniform and (b) he’s getting $6.7 million in “transition payments.” The payments are broken down as follows: a lump sum of $520K 30 days after he leaves, another lump sum of $4.6M within 7 months, and the last $1.6M to be paid in installments over the following year and a half. He’ll also be entitled to accelerated vesting for 222, 404 of his 384,006 shares of unvested restricted stock.

This contract replaces the termination deal that was already on tap for Menzer under a 1998 agreement. Under that one, he would only have gotten 2 years salary (amounting to a mere $2M based on last year’s proxy), plus a special stock option grant.

But here’s the real kicker: for the 3 years that the non-competition clause of his agreement will be in effect, Menzer and his wife will be allowed to keep using their “associate discount cards.” That’s right, it’s actually in the contract. I’m so glad, because I’d hate to see them chip away at that $6.7 million by paying the full retail price for socks.