Banducci said on Wednesday he would forgo the short-term incentive following last month’s revelation by Woolies that it had underpaid at least 5,700 staff by as much as $300 million over nine years,
“I have made the personal decision to forgo my FY20 short-term bonus because I believe it is the right thing for me to do as CEO,” Banducci said.
The target short-term bonus was $2.6 million, although the final amount could have been lower or higher depending on the chain’s performance over the year.
In FY19, Banducci received $974,000 in cash short-term incentives of a target $1.3 million, although the vesting of more than $2.1 million in deferred short-term bonuses and $6.9 million in long-term bonuses pushed his total remuneration to $12.6 million.
Chairman Gordon Cairns has also taken a 20 per cent cut to his $790,531 board fee.
“I accept that, as the chairman of the board, I have a higher level of responsibility than my board colleagues,” Cairns said.
Woolworths, which described the board-endorsed decisions as acknowledgements of responsibility, said it aims to complete its review of the underpayments by the end of the financial year on September 30.
“Once this is finalised, further consequences will be considered by the board,” Woolworths said in a statement to the ASX.
The company said last month that returning the cash plus interest to staff will result in a one-off remediation charge of between $200 million and $300 million in February’s first-half results, although the final numbers of staff affected and wages underpaid could climb.
Want to comment?
Send us an email, making it clear which story you’re commenting on and including your full name (required for publication) and phone number (only for verification purposes). Please put “Reader views” in the subject.
We’ll publish the best comments in a regular “Reader Views” post. Your comments can be brief, or we can accept up to 350 words, or thereabouts.
InDaily has changed the way we receive comments. Go here for an explanation.
We value local independent journalism. We hope you do too.
InDaily provides valuable, local independent journalism in South Australia. As a news organisation it offers an alternative to The Advertiser, a different voice and a closer look at what is happening in our city and state for free. Any contribution to help fund our work is appreciated. Please click below to become an InDaily supporter.