Yes he’s been there before ....with Sears
They are still around ....aren’t they?.....but you don’t want to look at their share price chart if you are a WHS shareholder
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Those bonuses (accrued) in H1 were $6,5m after tax or $9.0m gross.
To make sense of their guidance of npat for the full year npat being up to 27% less than pcp (ie H2 47% less) I would hazard a guess that another $6.5m is still to be accrued.
If so annual bonuses would be ~$18m Gross. These are ‘new’ bonuses and never been part of rem packages in the past.
In context this is saying we will make about $66m this year but bonuses will reduce that by $13m (all after tax)....we will be richly rewarded for making about the same as last year.
That’s how I see it anyway ....not always right in my assessment of things and this may be one of those times. Dropped an email to company about this ...don’t expect a reply.
At least shareholders might still get $45m odd
To the best of my knowledge this is the biggest bonus rort I can ever recall on the NZX for achieving nothing at all.
Where was Stephen Tindall the so called champion of what's morally right and fair in approving this extraordinary scheme ?
How on earth is this in the best interests of shareholders ?
Surely anyone with retail experience could tell them the only way forward was rationalization of the blue sheds and red sheds and everyday low pricing.
The way management are rewarding themselves you'd think they're the ones that discovered how to quadruple company profit overnight, (anything BUT).
Anyone staying a shareholder and condoning this corporate largess is endorsing this extraordinary destruction of their own earnings for goodness sake...
To be fair, the only thing keeping staff at the Warehouse now is the bonuses. The staff there do not exxactly have great expectations, do they?
Visiting any Warehouse store is a sobering experience in witnessing the decline and decline of a once highly successful retailer.
I’ve been a ‘scholar’ of how The Warehouse has evolved from shortly after Stephen Tindall started it last century (in the 80’s). One day I might get around to publishing my paper.
This is interesting - something they published in 2003. Big picture stuff it’s not surprising nothing seems to have changed much in 15 years .......but one would think that execution of strategic actions haven’t been that good for a while seeing thwy are where they are today.
STRATEGIC AND BUSINESS PRIORITIES
An important aspect of managing The Warehouse is an understanding of the key strategic issues facing the company.
There are several key assumptions that influence our strategic view of the company as we move forward, they are:
1. no single competitive advantage is sustainable in the long term,
2. retailing does not stand still, it is a very dynamic sector,
3. value retailing will become the dominant retail proposition and
4. consolidation and internationalisation in the retail sector is accelerating.
The implications for the Group in its long term planning are significant -
- we must continually reinvent ourselves - our retail formats, our merchandise, our marketing and promotion and the way we operate,
- we must be relentless in challenging the cost structure of the business to secure our position as a low cost retailer,
- we must continue to invest in our people capability and ensure we have people coming through the organisation who can take up leadership roles within the company,
- we must maintain strong sales growth and grow market share and
- we must continue to position ourselves as the leader in value retailing - choosing to reduce prices by reinvesting operational efficiencies into lower prices.
Our objective is to grow long term sustainable shareholder wealth. We will do this by maximising value in the existing businesses, continually growing the existing business and considering acquisition opportunities where they fit our areas of expertise.
Difficult to know how much of the decline is due to poor decisions. They have been hit by a perfect storm which would have been difficult to find answers too.
In the 90s they had everything in their favour, cornered the market in providing the great unwashed with cheap tat, and did a good job of it.
Those same people are now the highest adopters of tat buying from online chinese stores. If your not offering the biggest bargain and are a red shed then trouble is going to be the only outcome. Add in the 2 dollar shops and they are being hit from all sides.
The writing been on the wall a long time, but what is the solution? They tried to join in with their own click to buy store, and various other things but they basically pissing into the wind.
The strategic initiatives outlined by Winner shows they knew what was coming, but in reality there was not much that could be done.
Rod Duke has his regular dig at The Warehouse .......Rod reckons all retailers should be doing well in these narket conditions and can’t ubderstand why some big ones seem to be struggling.
Got an invite to a local Noel Leeming later this week for drinks and nibbles while they demonstrate their latest Kitchen appliances. At least they're trying something new, engaging with customers in live demonstrations. Reasonably impressive I think. Too scared to go LOL for the sake of my bank balance after Mrs Beagle hit me up for two new Lounge suites when we popped into Harvey Norman at the weekend. Ahhhh well...what do they say...happy wife, happy life.