No incentive payments for Woolworths executives
The Woolworths top management will not receive Christmas bonuses as the retailer failed to achieve profit targets.
The executives and directors including CEO Ian Moir, are also missing out on share appreciation rights and part of their long-term incentives awarded in 2014 and due to vest in 2017, Woolworths’s annual report for the year to June, released on Friday, showed. This comes after the retailer reported its worst results in 10 years.
Moir, finance director Reeza Isaacs, chief operating officer Sam Ngumeni and Woolworths SA CEO Zyda Rylands are consequently considerably poorer than in 2016, with the total executive wage bill for 2017 just R58.5m compared with R94m in 2016.
The bill excludes Woolworths Australasia CEO John Dixon’s A$2.7m pay package.
Remuneration committee chairman Tom Boardman said the retailer’s adjusted profits had not met targets.
"As this condition acts as a gatekeeper for the payment of incentives, no [short-term incentive] payments are to be paid for financial year 2017. The required [headline earnings per share (Heps)] growth for the share appreciation rights scheme allocated in August 2014 was not achieved, and therefore this offer has lapsed."
The share appreciation rights scheme, capped at R12.7m, hinged on adjusted Heps of 444c per share. Adjusted Heps came in at 420.8c.