Incoming Wesfarmers chief’s reduced pay, new Bunnings head confirmed

rob-scott-wesfarmers-mdWesfarmers’ new managing director will be paid as much as $3 million less than incumbent Richard Goyder when he steps into the top job in November.

Incoming MD, Rob Scott will receive a fixed salary of $2.5 million compared to the long-serving Goyder’s $3.5 million.

His total target remuneration including incentives has been set at $7.5 million, almost 30 per cent less than the $10.5 million for Goyder.

“We recognise changes in the market that have seen downward pressure on fixed pay levels for CEOs and reductions in overall reward opportunities,” Wesfarmers chairman Michael Chaney said on Monday.

“The board and Mr Scott have discussed and recognised the expectations of Wesfarmers’ many stakeholders regarding the remuneration levels of senior executives and believe that this package and those of other senior executives in the group are appropriate and in line with contemporary market practice of peers.”

Scott has also started reshaping the company’s executive leadership in preparation for his ascension.

Michael Schneider, currently MD of Bunnings Australia and New Zealand (BANZ), has been promoted to managing director, Bunnings Group, replacing John Gillam who stepped down from the role in December 2016. Schneider will retain responsibility for BANZ.

Bunnings United Kingdom and Ireland (BUKI) managing director Peter Davis will now report to Schneider, and Scott will chair the BUKI Steering Committee. Retail veteran Gillam will continue with the business in an advisory role as chairman of the Bunnings group council.

Anthony Gianotti will be the next Wesfarmers chief financial officer, succeeding finance director Terry Bowen, who will step down later this year after nearly nine years in the role and 12 years on the Wesfarmers leadership team.

Gianotti will become the deputy CFO in July and is currently deputy MD and finance director of the Wesfarmers Industrials division.

“Anthony will bring extensive experience in senior financial and commercial roles across the Wesfarmers Group, is deeply invested in Wesfarmers’ values and focus on sustainable shareholder returns, and has consistently demonstrated outstanding leadership in business improvement,” said Scott.

David Baxby will take over the industrials division in August.

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