Woolies CEO earns R191m despite R11bn of write-downs and R32bn of market losses
Imagine you try something big at work and – despite your good intentions – you lose R6 billion.
Would your company pay you R23 million for a year’s less-than-ideal work?
If you’re a South African CEO, it probably would.
That’s what Woolworths CEO Ian Moir earned in the past year despite the company’s unsuccessful (thus far) Australian endeavour which he spearheaded.
Moir’s earnings total R191 million in the past five years since he led Woolworths’ ill-fated acquisition of David Jones for R21.5 billion.
Clark finds CEO remuneration in South African questionable.
CEOs in this country are not making us proud, he argues.
Listen to the interview in the audio below (and scroll down for quotes from it).
We’ve seen three companies in the last two days - York Timbers, Woolworths and Grand Parade - pay their CEOs exorbitant sums of money where all three companies have either cost their shareholders significant losses, decreases in market value or enormous write-downs of the transactions they’ve done…Anthony Clark, analyst - Small Talk Daily
The company paid him [Woolworths CEO Ian Moir] R191 million… How fair is that when shareholders have seen massive amounts of money wiped from their pension funds?Anthony Clark, analyst - Small Talk Daily
Woolworths’ move into Australia has been spectacularly unsuccessful… the share price has fallen rapidly, and the earnings have been hit… International talent has just caused R11 billion of write-downs and R32 billion of market losses.Anthony Clark, analyst - Small Talk Daily
…paying a CEO to fix the mess he created… Who are these people?Anthony Clark, analyst - Small Talk Daily
If you do a good job and create value, you should be well recompensed. When Whitey Basson took home R600 million it caused a major scandal. But he created enormous amounts of wealth…Anthony Clark, analyst - Small Talk Daily
Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning:
This article first appeared on 702 : Woolies CEO earns R191m despite R11bn of write-downs and R32bn of market losses
Pavlo Phitidis says focus must be on the customer group you are trying to reach. You've got to get your demographics right.Read More
Though leaving corporate to venture into tourism has been a big test of resilience, she is still happy with her decision.Read More
Lumkile Mondi says skills and knowledge that have driven a lot of the growth in the past are going to be undermined.Read More
Need the inspiration to save? The Money Show’s Bruce Whitfield interviews “Supersaver Julia” at around 7:15 pm tonight.Read More
"The generation system is constrained due to the cold front. Expect load shedding," warns Eskom's Sikonathi Mantshantsha.Read More
Absa CEO Daniel Mminele says they had to transition very quickly within a very space of time into operating in a new normal.Read More
Wendy Knowler says it is expensive to issue or bank a cheque. For example, to deposit a cheque can cost well over R100.Read More
Caroline Da Silva of the FSCA says they will look into patterns of complaints to see how to change a bank's behaviour.Read More
The most recent example is China’s new security law introduced into Hong Kong.Read More
Lawyer PJ Veldhuizen says Judge Le Grange's judgment will be precedent-setting until it goes on appeal.Read More
Traffic volumes on the N1, N2, N7 and M5 freeways were only at about 65% of normal levels by the end of June.Read More
For some properties – with interest rates at half-a-century lows – it’s becoming cheaper to buy than to rent.Read More
Ouch! The Money Show's Bruce Whitfield asks Andy Rice why he gives Old Mutual’s new television commercial a “zero”.Read More
People will be talking about it ‘till they’re blue in the face. The Money Show's Bruce Whitfield interviews ad expert Andy Rice.Read More
The lockdown did it – not the pandemic – so we can’t pay, argues Santam. Bruce Whitfield interviews Tracey Davies of Just Share.Read More
Bruce Whitfield talks to SweepSouth cofounder Aisha Pandor about her attitude to money (hopes and fears, successes and failures).Read More
The Money Show’s Bruce Whitfield interviews columnist Tom Eaton about his new book, "Is it me, or is it getting hot in here?"Read More
The Money Show’s Bruce Whitfield interviews Kevin Lings, Chief Economist at Stanlib Asset Management.Read More
Bruce Whitfield talks to amaBhungane investigative journalist Dewald van Rensburg, who extensively interviewed Matodzi.Read More
"I’m outside; I don’t need a mask. If you’re uncomfortable, stay at home." Sociologist Steven Robins tries to make sense of it.Read More