Today's Labour News

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earningsFinancial Mail writes that Woolworths’ shareholders might take comfort from knowing that none of the group’s executive directors or senior executives received performance bonuses for last year — one of the worst in the group’s history.  

It was a year in which the board was forced to take a hefty R7bn write-down of the struggling Australian subsidiary David Jones, and report a 13% drop in adjusted headline earnings.  Despite the absence of 2018 bonuses, CEO Ian Moir still managed to pick up total remuneration of R30.5m.  His total guaranteed pay of R19m was lifted by the vesting of shares that had been awarded in terms of previous years’ performances.  There was also R4.5m of dividend payments received on unvested shares.  So, unlike most Woolworths’ shareholders, 2018 wasn’t too bad for Moir.  And while neither he nor his colleagues received performance bonuses, they will have taken some consolation from the one-off allocation of a chunk of shares that were awarded to ensure the top executives were motivated to "deliver sustainable returns for shareholders" over the next three years.  Yet, though many of the numbers in the remuneration report might generate some heated debate, its presentation is ahead of most JSE-listed companies.  In light of recommendations from the recent jobs summit, Woolworths’ disclosure on executive pay in the context of overall employee remuneration could provide a useful reference for other listed companies.


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