Woolworths silent on Grant O’Brien payout

Ex-CEO Grant O’Brien is believed to have left Woolies with about $11m, but the firm says the sum is private.

Former Woolworths boss Grant O’Brien.

Woolworths has not declared the cost of any payout to former boss Grant O’Brien, with the company’s annual report released late last week silent on the issue.

The report noted Mr O’Brien formally finished work at the company on August 1, which meant he had reached the age of 55, entitling him to participate in the company’s defined benefit scheme.

No executives were paid any short-term bonuses last year, although company secretary Richard Dammery received non-monetary benefits totalling $469,967 to bring his final pay to $1.6 million.

Woolworths chief executive Brad Banducci was paid $2.3 million, reflected in part by the fact he only served in the top job for part of the year and his fixed pay has since gone to $2.5 million.

The old defined benefits scheme is rumoured to pay benefits based on five times final fixed salary, which for Mr O’Brien was $2.2 million, making the payout around $11 million. The company is declining to comment, saying it is a private matter for Mr O’Brien.

The level of his superannuation is of course in part determined by any personal contributions, which is a private matter, but company contributions are a matter of shareholders.

This year, by way of example, the company said superannuation benefits cost shareholders $446,000, up from $435,000 the prior year.

It also noted there was a further sum of $444,758 in long service and other benefits paid to Mr O’Brien, effective August 1, which was outside the cut-off date for the annual report and was not included.

Paper shuffling

The old PaperlinX empire is being re-created, with Nippon Paper-controlled Australian Paper wanting to buy the Edwards Dunlop division owned by US-based BJ Ball.

Australian Paper, which sells under brands including Reflex, is the only Australian company making photocopying paper, and Edwards Dunlop is a major rival distributor and importer.

The division was sold by the end owner PaperlinX in 2001 to a private equity firm.

The deal is subject to ACCC approval.