RFG ex-managing director Andre Nell paid $1.65 million last year, including $750k termination pay

MORE shake-ups in the executive ranks of Gold Coast franchisor Retail Food Group are under way, with two six-figure positions vacant. But it’s what the ex-boss earned that will surprise you

RFG’s results came out last week.

FORMER Retail Food Group managing director Andre Nell was paid more than $1.65 million by the struggling company last year, the company’s end-of-year financial statements have revealed.

Mr Nell’s pay was boosted by a $750,000 termination payout and a $100,000 bonus, the statements showed on the same day its auditor said there were doubts over RFG’s viability as a going concern.

The group reported its full-year results last Friday, revealing a staggering net loss of $307 million for the financial year.

Fellow executives Peter McGettigan, Mark Connors and Michael Gilbert were also paid bonuses in the 2017-18 financial year, for a total of $146,800, based on their performance in the previous year.

Former CEO Gary Alford and former director Tony Alford were also still on the company books during FY18 and were paid $7766 and $165,144 respectively, despite both ceasing employment just three days into the financial year.

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Former Retail Food Group managing director Andre Nell and former CEO Gary Alford. Photo: Steve Holland

More shake-ups are under way in the executive ranks of the Southport franchisor, which operates brands including Donut King, Brumby’s and Pizza Capers, with two six-figure positions vacant.

RFG is advertising for a chief operating officer, a role that’s been unfilled since it was left by Mr Nell three years ago. Mr Nell was promoted from the role to Franchise CEO in 2015 before ascending to group CEO and then managing director before his departure in May.

The company is also set to lose long-time executive Mr Gilbert, who has served as CEO of its international operations since June last year.

Mr Gilbert resigned on June 13 and is due to finish up with the company next week.

He’d previously been chief franchise officer and head of projects.

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Richard Hinson, the new boss of troubled franchise operator Retail Food Group at the Brumby's in Red Hill. Thursday June 7, 2018. Picture: AAP

RFG’s share price fell from $4.70 at the start of the financial year to $0.54 at its end, with underlying earnings per share falling from 43.7c in FY 17 to 18.4c in FY18.

The directors decided performance rights would not be awarded for the financial year.

The financials revealed incoming group chief executive Richard Hinson was paid $230,437 for the first months of his tenure, while chairman Colin Archer was paid $237,462; CFO Mr McGettigan was paid $560,809; Mr Gilbert received $413,283 and director of corporate services and company secretary Mark Connors was paid $391,998.

The company’s struggles have placed significant pressure on its debt position, and it remains under strict covenants with its major lenders, despite them agreeing to waive testing of the covenants for the financial year.

RFG has embarked on a turnaround strategy in the wake of devastating claims of poor treatment of its franchisees.

Shares in the company closed 3.81 per cent lower at 50.5c yesterday.