Coles chief executive's bonus cut after scandals and sales fall

Summarised from 2 outlets · 4 reports · Updated 6 Nov, 00:50 · Archive

Coles has halved its chief executive's short-term bonus to $800,055 following misconduct cases and falling sales.

Coles has cut its chief executive's short-term bonus in half to $800,055, payable in 33,829 shares. This follows a trading update revealing the supermarket had fallen behind Woolworths for the first time in almost two years on a sales basis, wiping $2bn from its company value. The reduction, decided by the board and subject to shareholder vote, is on top of an annual fixed salary of $2.132m. The chief executive will also receive a $1.6m long-term incentive bonus based on shareholder returns and capital measures.

Chairman Peter Allen said the pay cut reflected accountability for misconduct under the executive's oversight. Two legal matters influenced the decision: a worker underpayments case in the Fair Work Commission and a misleading sales case in the Federal Court, where Coles was found guilty in May over its false 'Down Down' marketing campaign. The penalty for the marketing breach remains undetermined.

In August, Coles reported a 1 per cent rise in annual profit to $1.09bn, though $235m was set aside to backpay underpaid staff. Despite the profit dent, the company boosted shareholder dividends by 13 per cent.

How it is being reported

• Coles execs docked $1.7m in bonuses after court casesColes chief executive Leah Weckert's short-term bonus has been slashed after the grocery giant lost two court cases related to promotions and unpaid overtime.Perth Now · 6 Nov, 03:23
• Coles execs docked $1.7m in bonuses after court casesColes chief executive Leah Weckert's short-term bonus has been slashed after the grocery giant lost two court cases related to promotions and unpaid overtime.The West Australian · 6 Nov, 03:23
• Coles chief executive’s short term bonus cut in half to $800kSupermarket giant Coles has moved to slash its chief executive’s short-term bonus in half after a series of scandals and falling sales.Perth Now · 6 Nov, 00:15
• Coles chief executive’s short term bonus cut in half to $800kSupermarket giant Coles has moved to slash its chief executive’s short-term bonus in half after a series of scandals and falling sales.The West Australian · 6 Nov, 00:14

In this story: Coles · Woolworths · Peter Allen · Fair Work Commission · Federal Court · Melbourne

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