Woolworths boss Grant O’Brien’s annual pay has fallen by almost a third to $3.8 million as the retailer suffers from its battle with rival Coles and struggles to revive Big W.
Mr O’Brien’s base salary of $2.4 million in the 2014/15 financial year was unchanged from the previous year, but potential bonuses of $2.3 million were not granted.
That was due to the company’s 12.5 per cent fall in annual profit to $2.15 billion, well short of his performance targets.
Woolworths, which also owns liquor business Dan Murphy’s and hardware chain Masters, suffered from a fall in supermarket sales, while Big W was still a drag on revenue despite big spending on its transformation.
The retailer has also made major changes to its executive team, most recently with the departure of chairman Ralph Waters as a direct consequence of the company’s disappointing performance.
Mr O’Brien, who in June announced he would leave Woolworths once a replacement could be found, also received $1.4 million in shares in 2014/15, which were awarded as deferred bonuses in previous years.
His annual pay was down from $5.3 million in 2013/14, when he enjoyed a cash bonus of just over $2 million.
New chairman Gordon Cairns wrote in the company’s annual report to shareholders that a range of internal and external CEO candidates have been identified.