Today's Labour News

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woolworthsBL Premium reports that the chair of Woolworths’ remuneration committee has defended the remuneration paid to the retailer’s CEO.  

The package has been slammed for being too generous in the context of the earnings knock caused by the multibillion-rand impairment of Australian retailer David Jones.  Responding to questions from a shareholder at the group’s annual general meeting on Wednesday, Tom Boardman explained that CEO Ian Moir’s guaranteed pay had not been increased for three years and he had not received a bonus in that time.  Over the past three years the group has gone from reporting a profit of R5.4bn in 2017 to a loss of R3.5bn in 2018 and another loss of R1.1bn in 2019.  Boardman acknowledged that “in the last three years the company’s performance has been poor and this is reflected in the share price”.  In response to a question from Aeon Investment Management about how the remuneration committee controlled the ratcheting effect on remuneration of companies using a limited number of remuneration consultants, Boardman said his committee was aware of it and was trying to address it.  Aeon’s Asief Mohamed indicated after the meeting that companies generally used the same consultants which “results in executives benefiting from an ever-increasing peer group comparison.”  More than 30% of shareholders voted against the implementation of the remuneration report.  Shareholders were invited to write to the board outlining their concerns.

  • Read the full original of the report in the above regard by Ann Crotty at BusinessLive (paywall access only)

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