- Woolworths’ (WOW) CEO Brad Banducci has announced he will forgo an A$2.6 million bonus following the underpayment scandal that plagued the retailer last month
- On October 30, the Australian supermarket discovered it underpaid nearly 6000 staff members by as much as $300 million over the last decade
- The retail giant is reportedly facing the issue head-on and has promised to repay all workers with interest
- Chairman Gordan Cairns has also taken responsibility and will take a 20 per cent reduction in board fees this financial year
- Shares in Woolworths are up a slight 1 per cent and trading for $39.57 each
Woolworths’ (WOW) CEO Brad Banducci has announced he will forgo a $2.6 million bonus following the underpayment scandal that plagued the retailer last month.
In an announcement to market today, Brad made the personal decision to refrain from receiving his 2020 financial year short-term bonus, claiming “it is the right thing for me to do as CEO.”
The news didn’t come as much of a surprise to Mr Banducci, who previously flagged an expectation to lose his bonus after the underpayment scandal broke.
On October 30, the Australian supermarket discovered it underpaid nearly 6000 staff members by as much as $300 million over the last decade.
Once the news was released, the CEO admitted the company let staff down and would face the issue head on.
“The highest priority for Woolworths Group right now is to address this issue, and to ensure that it doesn’t happen again,” he said in the October announcement.
Additionally taking responsibility is Woolworths’ Chairman, Gordon Cairns.
Gordon stated he would take a 20 per cent reduction in board fees this financial year.
“I accept that, as the chairman of the board, I have a higher level of responsibility than my board colleagues, and therefore have decided to take a 20 per cent reduction in my board fee for 2020,” Gordon said.
“As a group, we have let many of our salaried team members down. And our priority right now is to ensure that they receive the money they are owed as quickly as possible,” the company leaders said in a joint statement.
According to the CEO and Chairman, it seems further consequences might be viable. This will be considered by the Board once this is finalised.
The major grocer has promised to repay workers with interest and will provide an update in February along with a final account in its Half-Year 2020 results.
Shares in Woolworths are up a slight 1 per cent and trading for $39.57 each at 12:10 pm AEDT.