Woolworths executives miss out on $3m in bonuses after shock result

Woolworths’ top executives, including CEO Brad Banducci, have missed out on $3 million in cash bonuses.

Woolworths CEO Brad Banducci. Picture: Adam Yip

Woolworths’ top suite of executives, including chief executive Brad Banducci, have failed to pick up any of a total pool of $3 million in cash bonuses available to them after the supermarket group notched up a $1.23 billion loss in 2016, its first loss in 23 years as a public company.

Meanwhile, recently retired Woolworths CEO Grant O’Brien collected $444,758 in accrued annual leave payments between his resignation in February and the actual end of his employment with the retailer in August, the retailer’s annual report shows.

Mr O’Brien’s protracted departure from Woolworths allowed him to remain employed at the company when he turned 55, which allowed him to gain access to the lucrative Woolworths defined benefit scheme in a package that some analysts have valued at more than $5m.

In the Woolworths annual report, released on Friday, chairman Gordon Cairns concedes that 2016 was a “disappointing’’ year as billions of dollars in writedowns and impairments — mostly sourced from its doomed hardware chain Masters — plunged the company into the red and forced it to more than halve its dividend.

“The financial results for the year were disappointing, with sales from continuing operations down marginally to $58.1bn and net profit after tax from continuing operations attributable to shareholders of Woolworths before significant items down 39.2 per cent to $1.6bn. As a result, the board have announced a reduced final dividend of 33 cents per share, down 54.2 per cent on prior year.”

Woolworths’ key executives — Mr Banducci, chief financial officer David Marr, chief legal officer Richard dammery and boss of its Endeavour Drinks business Martin Smith — have shared in some of that pain by missing out on all cash bonuses.

The annual report shows around $3m in cash was up for grabs.