Harvey Norman have been labelled the most expensive consumer electronics retailer in Australia so it’s not surprising that senior executives have been given multimillion dollar pay rises.
The big pay rises for directors such as David Ackery, John Slacksmith and Katie Page have been handed out after the retailer increased its profit by 49 per cent.
Chief operating officer John Slack-Smith got a 14 per cent pay rise to just over $2 million, and chief financial officer Chris Mentis’ pay also rose 14 per cent to $1.55 million.
David Ackery the head of electrical and consumer electronics operations got an $800,000 bonus. Ackery’s salary package is $2,005,103 per annum.
Executives who have quit Harvey Norman for senior roles in other consumer electronics organisations have said that one of the reasons that they left the mass retailers was “the same old executives were rewarded” and that “there is little opportunity for promotion”.
Rod Orrock the former General Manager of Domayne who quit earlier this year to take a senior role at Dick Smith has been given a significantly larger salary package in his new role as head of buying at Dick Smith, than the $559,000 he was paid at Harvey Norman, he is also tipped to be a contender to run Dick Smith if current CEO Nick Aboud steps aside.
CEO Katie Page was paid $2.8 million in 2013/14, up 54 per cent on the previous year due to a higher salary and bonuses.
Gerry Harvey got $1.1 million, up on the previous year’s $1 million, due to a $106,000 long-term cash bonus.
Harvey Norman’s profit in 2013/14, rose to $212 million due to stronger sales and property values.
The Australian said that Mr Harvey’s stake in the company is currently valued at more than $1.1 billion, while Ms Page’s shareholding is worth $61.5 million.
Details of Harvey Norman’s executive pay packages were published in the retailer’s annual report.
The retailer reiterated that it expected its performance over the medium term would be underpinned by Australia’s booming housing market.
“Favourable trends are evident in the Australian housing market, and we are positioned to harness our market-leading position in homemaker product categories to build additional market share,” Mr Norman and Ms Page wrote in the report.