WESFARMERS’ new managing director will be paid as much as $4 million less than outgoing chief Richard Goyder when he steps into the top job in November.

But Rob Scott, an Olympic medallist, will still be eligible for a pay and perks pool worth $10 million — about $27,400 every day of the year.

Wesfarmers, the parent company of retail heavyweights including Coles, Kmart and Bunnings, has revealed Mr Scott will receive a base salary of $2.5 million.

That compares with $3.5 million for Mr Goyder, his long-serving predecessor, who is now chairman of the AFL Commission.

Mr Scott’s potential bonus pool has been set at $7.5 million, almost 30 per cent less than the $10.5 million for Mr 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 today.

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Mr Chaney said the board and Mr Scott had “discussed and recognised the expectations of Wesfarmers’ many stakeholders regarding the remuneration levels of senior executives”.

They believed “this package and those of other senior executives in the group are appropriate and in line with contemporary market practice of peers”, he said.

Mr Scott, who won a silver medal in rowing at the 1996 Atlanta Games, had worked at Wesfarmers in 1993 before becoming an investment banker.

He returned to the company in 2004, climbing the corporate ladder to lead its insurance arm, then Coles’ finance division followed by managing director of the industrials division.

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The 47-year-old has also started shaking up the company’s executive leadership in preparation for his ascension.

Chief financial officer Terry Bowen will step down later this year after more than 20 years at Wesfarmers, including eights years as CFO, to chase opportunities elsewhere.

 

He will be replaced by the group’s current boss of its industrials division, Anthony Gianotti.

David Baxby will take over the industrials division in August, while Bunnings Australia and New Zealand managing director Michael Schneider has been promoted to lead the hardware chain worldwide.

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Business Adviser

About Business Adviser

International Business federation is a non-profit interenational organisation . Its activities include Organising Global and International Business Conferences and Networking Events, Arranging Business Mentoring Programme, Arranging Business Expo etc. Its aims are: i) Promoting international business collaboration ii) Promoting business growth through showcasing business at international level and networking iii) Promoting innovation through cross fertilisation of ideas and business mentoring. iv) Helping dynamic collaboration between the emerged and emerging markets.

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