As Harvey Norman shares wallow with several brokers recommending a sell order, boss Gerry Harvey and is wife Katie Page have given themselves a pay rise because of the impact of the recent financial crisis on their hare options.
The pay rise comes as organisations like Credit Suisse cut Harvey Norman to “underperform” from “neutral”. Ms Page’s pay jumped from $694,215 to $947,375, a rise of 34.46 per cent, while Gerry Harvey boosted his base pay from $626,471 to $736,855, an increase of 17.61 per cent.
Last month David Ackery the General Manager of Electrical at Harvey Norman and fellow director John Slacksmith both sold down their shareholding in the retailer with Ackery netting $1.5M and Slacksmith $6 Million dollars.
Gerry Harvey said that the recent financial crisis had a painful impact on the share-option element of their remuneration packages. “We lost about $3 million because of the way the options were timed and how the market went down,” he said.
“We gave ourselves those pay rise, but it’s only a tiny fraction of what we lost.”
Recently Harvey Norman announced a 15.2% decline in profits to $250.42 million compared to $295.14 million for the same period in 2008. In comparison JB Hi Fi reported a 40% increase in profits.