Share

Woolworths CEO has now been paid R190m since a disastrous deal Down Under

Despite spearheading a ill-fated foray into Australia, Woolworths [JSE: WHL] CEO Ian Moir pocketed R23m in the past year. This brings his total earnings over the past five years to R191m.

The past year's remuneration is R7m less than the previous year, and he didn't receive a performance bonus as lower sales and profits from its Australian department store chain David Jones continued to hurt the group.

Despite a strong local performance from Woolworths, group headline earnings fell almost 5% for the year to end-June - due to David Jones.

Moir was appointed CEO of Woolworths in 2010, and championed the acquisition of the Australian department store in 2014 for R21.5bn. But the group has since been forced to write down more than R6bn of the acquisition's value. Continued investment in the underperforming David Jones has also increased the debt burden on the local company. 

In its annual report, released on Monday, Woolworths said the performance of David Jones had been disappointing due to the "poor execution of key initiatives" and the costs and significant disruption from a Sydney store refurbishment. In addition, customers are increasingly shopping online, leading to a reduced footfall in shopping centres.

In an interview with Bloomberg in August, Moir admitted that he may have gotten it wrong. “I regret the price, and buying it at that time - hindsight is a wonderful thing - but I think we have a great asset now.”

In the five years since the takeover, he earned total remuneration of more than R191m, following sizable payments in 2015 (R49m), 2016 (R53.8) 2017 (R34.7m), 2018 (R30.6m) and 2019 (R23m).

Last year, Woolworths’ Australian CEO John Dixon was made redundant, but the company's annual report shows he still earned R19.7m before he went.

While Woolworths represents almost two-thirds of the group's revenue, Moir will now be based in Australia to oversee the turnaround of David Jones.

The CEO of Woolworths South Africa, Zyda Rylands, was paid R12m over the past year, up from R8m in the previous year.

Woolworths food sales grew by almost 8% over the past year, and, in a surprising turnaround, it also saw a strong 8% increase in sales of its clothing over the past six months. This was thanks to a focus on core ranges and basics, backed by improved availability, the company said.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.90
-0.0%
Rand - Euro
20.44
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.1%
Platinum
908.75
+1.3%
Palladium
1,014.28
+1.3%
Gold
2,218.96
+1.1%
Silver
24.81
+0.7%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders