Bunnings costs bonus

Ex-Wesfarmers chief pays for UK failure

FORMER Wesfarmers chief Richard Goyder has been stripped of all his bonus payments for the final year he ran the conglomerate because of its Bunnings UK fiasco.

Wesfarmers, which in May pulled the plug on its attempt to take Bunnings into Britain and Ireland, has stripped $17 million in long-term bonus payments from current and former senior executives over the debacle. Mr Goyder, who now chairs the AFL Commission, was leading Wesfarmers when it launched its assault on the UK home improvement market.

He has lost out on all shortand long-term incentives for the year to June.

Former chief financial officer Terry Bowen was also stripped of all incentives. The details were contained in Wesfarmers’ annual report, released yesterday.

Both Mr Goyder and Mr Bowen left Wesfarmers last November as the Perth-based conglomerate refreshed its executive ranks.

Wesfarmers, which also owns Coles, Kmart, Target and Officeworks, torched $1.9 billion in shareholder value trying to recreate the Bunnings model in Britain.

Mr Goyder collected $2.79 million, which included a termination payment of $968,720, for the five months he was at Wesfarmers during the financial year to June.

That haul was down from the hefty $12.1 million he picked up the previous financial year.

Mr Bowen picked up $1.9 million, including a $950,196 termination payment, compared with $6.68 million the previous year.

Mr Goyder became AFL Commission chair in April last year.

His successor at Wesfarmers, Rob Scott, picked up $6.55 million in pay and perks for the year to June, up from $5.61 million the previous year.

Former Coles managing director John Durkan was paid $4.91 million, down from $5.65 million.

Mr Durkan left Coles on Friday, replaced by the former boss of Metcash’s supermarkets and convenience business, Steven Cain.

Guy Russo, the outgoing head of Kmart and Target, collected $5.47 million, down from $6.04 million.