Today's Labour News

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earningsBusinessLive reports that Woolworths Holdings’ decision to reduce the weighting of total shareholder return (TSR) in calculating long-term incentives for its executives has sparked fears that the executives are not expecting a recovery in the share price.  

The retail group’s annual report reveals the TSR weighting used to measure performance conditions for the performance share plan (PSP) has been cut from 50% to 20% and return on capital employed increased to 30%.  This change will make the awarding of long-term bonuses less reliant on share price performance.  The share price has been on a steeply downward trajectory since late 2015.  The weighting of headline earnings per share remains at 50%.  The remuneration committee explained that the change to the weighting was meant to bring it "more in line with market practice among companies similar in size and industry".  One analyst said it was disconcerting to make this sort of change when Woolworths was going through such challenging times.

  • Read this report by Ann Crotty in full at BusinessLive (paywall access)


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