Senior executives at Harvey Norman are still being paid millions of dollars despite the Company reporting a 32% plunge in profits; several organisations are calling for a new management team to be installed at the struggling retailer.David Ackery, the head of electrical and COO John Slack Smith both received $1.6 million which was down $261,248 on what they got last year.
Earlier this month the Intelligent Investor called for John Slack Smith, Katie Page and Chairman Gerry Harvey to resign claiming that “new management was needed” if the Company was to turned around.
Harvey Norman Chairman Gerry Harvey also took a pay cut of $115,000 in the 2011/12 year along with Katie Page, who is Mr Harvey’s wife. She was paid a total of $1.8 million for the year to June 30, 2012, $200,000 less than the $2 million she earned in the previous year.
Mr Harvey’s performance cash incentives fell from $400,000 to $285,000, while Ms Page’s dropped from $500,000 to $300,000.
Gerry Harvey’s total pay has dropped to $1.035 million from $1.15 million in 2010/11.