Woolies reduces chief executive’s pay
WOOLWORTHS group chief executive Ian Moir’s total remuneration declined 23.4 percent during the year to the end of June as the retail company continued to battle headwinds from its Australian unit and a dampened consumer spending in its South African home market.
Moir took home R23.04 million during the period, compared with R30.56m the same period last year.
Woolworths’ annual report released yesterday said the shortfall could be attributed to the group’s long-term incentives paid to Moir.
In 2019, Moir received long-term incentives of R3.99m, while in 2018 the figure was R11.5m.
However, his 2019 basic salary of R18.91m was slightly lower than the R18.92m he received last year.
The 2019 total remuneration package consists of basic salary of R18.91m, benefits of R142 000 and dividends paid out to the value of R3.99m.
The chairperson of the remuneration committee, Tom Boardman, said the committee remained confident that the group’s remuneration philosophy and policies were aligned to its strategy and in line with the best practices in the market.
Boardman said the practices were subject to a robust re-examination each year.
“However, where it is clear that the remuneration policy should be reconsidered in order to adapt to changing business realities and to maximise shareholder value, or where shareholders have raised legitimate concerns regarding an aspect of the remuneration policy, the committee will consider amending relevant aspects of the group’s remuneration framework,” Boardman said.
The group’s other executive directors, including South Africa chief executive Zyda Rylands, received a total remuneration of R11.97m, while chief operating officer Sam Ngumeni took home R8.27m for the year.
The group’s financial director, Reeza Isaacs, was paid a total package of R6.80m. The combined total remuneration package for all executives for 2019 was R50.07m, less than the 2018 figure of R51.29m.
The group operates across the southern hemisphere, including 11 sub-Saharan African countries, Australia and New Zealand.
Woolworths’ performance for the year continued to be negatively impacted by its Australian subsidiary, David Jones, as the subsidiary reported a 41.3 percent decline in adjusted profit before tax to A$37m (R377.42m).
Last month, the group said its Australian division raked in a net profit of A$1.75bn for the year ended-June from A$1.61bn.
It said the food segment operations saw a 3.1 percent hike in comparable sales during the period, while total revenue from continuing operations climbed 5.3 percent to A$59.98bn.
Former Woolworths Australia chief executive John Dixon earned a total remuneration package of A$1.92m, even though he left the group last year.
Woolworths shares declined 1.55 percent on the JSE yesterday to close at R55.08.