Yahoo Finance Woolworths Brad Banducci sitting on $24m Woolworths pay day - as CEOs warned ‘contempt is brewing’
Aussies are becoming less tolerant of high-paying executives who aren't sympathetic to their realities.
Woolworths head Brad Banducci made a tidy $8.6 million last year and if that’s the rate he’s going to be paid for his next nine months of service, could walk away with $6.5 million for 2024 too.
The outgoing Woolworths CEO is ending his 13-year career with Australia’s biggest supermarket group in a shroud of controversy, but the company’s board has claimed his departure was in the works for months when they announced profit growth on Australian groceries on Wednesday.
Banducci’s realised pay - taking in cash and equity compensation - was listed at $10,640,763 (up 12.9 per cent over 5 years), in the latest CEO wage report from Australian Council of Superannuation Investors (ACSI). And while he might not land back on the list of top paid CEOs as head of Woolworths next year, he could potentially walk away with more than double that earning in potential share rights.
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Based on his most recent disclosures in November, he has an estimated $10.6 million in already accumulated shares and a package that could be worth $12 million if performance measures are met, according to The Australian.
This figure could change depending on the Woolworths share prices, which sunk 6 per cent on Wednesday.
‘Out-of-touch’ CEOs earnings in focus as Aussies demand better
The chief executive officers at the biggest companies in Australia are earning 55 times more than a typical Aussie worker, according to ACSI, which found the 100 largest firms paid their top-dogs 5.2 million.
Louise Davidson, CEO of ACSI, a governance advisory firm that informs shareholders on activities of ASX-listed companies, said larger companies were leaning toward incentive structures that encouraged leaders to prioritise investor outcomes but that “CEOs shouldn’t be over-rewarded for just doing the job they’re already well paid for”.
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But economic writer Joan Westenberg said this approach is fostering animosity from the public, noting Banducci’s fate was similar to that of former Optus head Kelly Bayer Rosmarin who faced backlash for her out-of-touch response to a struggling business owner impacted by the telco’s major outage.
Westenberg warned that executives need to be mindful of working customers and staff that enable their positions, who are becoming less tolerant of highly-paid executives blowing off their concerns and “simply want to put food on the table”.
“Narrow executive mindset obsessed with inflating profits, margins and bonuses has led to leadership that holds contempt for working Australians battling rising living costs,” she wrote.
“Demonstrating moral fortitude to address challenges in the national interest is exactly what Australians expect from well-compensated, powerful leaders.
"The days of unchecked corporate excess are over. Australian CEOs must adjust or make way for a new generation that is in tune with community expectations. Their current conduct suggests that too many remain arrogantly out of touch with the people.”
Banducci will continue in the role until September 1 when Amanda Bardwell will take over.
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