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Retail group Woolworths has released its integrated annual report for fiscal year 2020, which reveals the salary structure of its top executives, including the farewell package for former boss Ian More.
Moir resigned as chief executive officer of the Woolworths group on February 16, 2020. According to the retailer’s compensation report, his earnings for the year to that date were just under R14 million. However, the former boss is still in line for a larger payday.
Since 17 February, Moir earned A $ 576,215 (R6.95 million at current exchange rates) as David Jones’ Acting CEO, and upon his departure from the group, he received a pending license agreement and prepayment of 12 months of 1.9 million Australian dollars (22.9 million rand).
This brings its total outflow total closer to R44 million, with another R35 million on the cards if it maintains its restriction on trade deals.
The Woolworths Compensation Committee assessed the trade agreement restriction for Moir, which had been negotiated in 2013 (prior to the David Jones acquisition) and determined that it was only applicable to South Africa.
To protect the group, an extended trade restriction was negotiated that also covers Australasia and if Moir does not default, he is owed a trade payment restriction of A $ 2.9 million (R35 million) in fiscal 2023.
As part of that agreement, it was agreed that no further shares would be issued to Moir in terms of his employment contract beginning in 2019. His agreement entitled him to shares worth 150% of his guaranteed package per year.
Moir joined Woolworths in January 2010 and was appointed CEO in November of that year.
He oversaw a period of significant growth and transformation in the group, but also led the retailer’s troubled adventure in Australia through the acquisition of the David Jones brand.
The movement began to unravel through a series of changes, notably a relocation of headquarters to Melbourne from Sydney that required around 75% of the workforce to be replaced. Two business write-offs followed.
No pay cuts
Current Woolworths CEO Roy Bagattini took office in February 2020 and received a R15.7 million package for the year. This consisted of a basic salary of R4.7 million and R9.8 million in benefits.
Under benefits, Bagattini’s payment comprised a conditional login bonus, relocation, and legal costs.
CFO Reeza Isaacs took home a total salary of R8.2 million for the year (2019: R6.8 million), and the salary of COO Sam Ngumeni totaled R9.75 million (2019: R8.3 million) ).
Woolworths South Africa Director Zyda Rylands earned 11.7 million rand, which was only marginally less than the 12 million rand earned in 2019.
Financial results
In early September, Woolworths reported a 54.5% drop in pre-tax adjusted earnings to R2.2 billion for the 52 weeks ending June 28, 2020, citing the impact of Covid-19 on its performance. in the second half of the year.
Revenue fell 1.2% to R72.2 billion, while overall earnings per share fell 65.1% to 119.8 cents per share.
Total dividend per share decreased 53.3% to 89 cents per share, from 190.5 cents per share.
Woolworths noted that the adjusted earnings before taxes for the first half were 12.3% lower than the previous year, at R2.4 billion. “The emergence of Covid-19 caused a significant disruption to our business, resulting in store closures, less influx, lost sales, and margin dilution due to promotional and other initiatives to clear inventory.”
Group sales for the current year on a 52-week comparable basis were 0.1% lower compared to the prior year proforma and decreased 1.1% in constant currency terms.
Sales performance for H2 was significantly affected by the temporary closure of most of the group’s non-food stores, along with a decrease in foot traffic and the resulting loss of commerce, it said.
Read: Woolworths Profits Fall Due To Lockdown Restrictions
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