Lovisa CEO under fire for earning $21m amid allegations staff are underpaid
The CEO of a major Australian fashion retailer has sparked outrage after his staggering earnings were revealed just as staff alleged they were underpaid.
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The CEO of a major Australian fashion retailer has sparked outrage after his staggering earnings were revealed just as staff alleged they were underpaid.
On Friday, the Australian Financial Review released its CEO Salary Survey which found that the chief executive of jewellery giant Lovisa was the second highest paid boss in the country.
The company’s relatively new CEO, Victor Herrero, is on an eye-watering $21 million a year.
Macquarie Group boss Shemara Wikramanayake is the only Australian chief executive to surpass that number.
Mr Herrero’s salary revelation comes just a week after a law firm announced it was investigating whether to launch a class action against Lovisa over wage theft allegations from former staff members.
News.com.au has contacted Lovisa for comment.
Lovisa is a large jewellery chain that markets affordable accessories which was founded in Australia in 2010.
It has since boomed to over 400 stores worldwide, including Australia, New Zealand, Malaysia, Singapore, South Africa, Spain, France and the US.
Mr Herrero has only been Lovisa’s CEO for a year, after he replaced outgoing chief executive officer Shane Fallscheer, who had worked in that role for 12 years.
Previously, Mr Herrero worked at the Inditex Group, the owner of Zara, Pull & Bear and Massimo Dutti, for 13 years.
Mr Herrero also spent four years in California as CEO of Guess brand and also acted as the CEO of international shoe brand Clarks.
He is Spanish and was living in Singapore prior to his appointment at Lovisa.
The AFR’s Boss deputy editor noted that the CEOs of “bigger and better known companies” were on much smaller salaries.
For instance, the CEOs of Telstra and Qantas are on $8.5 million and $5.6 million respectively.
Earlier this month, national law firm Adero, which specialises in employment law class actions, announced it was looking into the jewellery chain Lovisa over a potential breach of its enterprise agreement.
“Adero Law has become aware of a pattern of potential underpayments occurring at Lovisa Pty Ltd (Lovisa), that involves a failure to pay minimum rates of pay arising under the Lovisa Enterprise Agreement 2014,” the firm stated.
Adero’s website says it is aware of claims that staff had been directed to skip meal and toilet breaks, undertake unpaid overtime and work additional hours during Christmas sales periods without appropriate overtime rates.
“If these practices have occurred across Lovisa stores, Adero may pursue a class action against Lovisa and seek that compensation be paid to any employee whose entitlements were not paid in full,” the firm said.
“We are investigating the underpayments on behalf of casual, part-time and full-time employees of Lovisa.
“This includes team members, senior stylists, assistant store managers, store managers, inventory managers and any other in-store employees.”
Adero said it would look to recover any potential underpayments due to breaches of the enterprise agreement, which may be owed to current and former employees from 2016 onward.
One worker has taken to social media in now-viral TikTok videos outlining their own horror experiences with Lovisa.
Marissa Tukuafu claimed she and her colleagues were often ordered to work overtime and on days off – eventually impacting their health and wellbeing
Ms Tukuafu alleged the work conditions pushed herself and her colleagues to their physical limits, recounting “throwing up” and urinating behind the counter due to a lack of breaks.
When news.com.au first contacted Lovisa over these allegations, no comments were provided.
— With Jack Evans
Originally published as Lovisa CEO under fire for earning $21m amid allegations staff are underpaid
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