Former WH Smith boss Kate Swann has banked a bumper £9m belated pay cheque from her former employer after several long-term incentive schemes paid out.
Swann quit the high street bookseller and stationer last year after a decade in charge, but managed to hang on to hefty share bonuses despite walking straight into a new job at transport cafe operator SSP, which she led to a London stock exchange listing earlier this year.
Swann’s pay arrangements had sparked anger ahead of the company’s shareholder meeting, with corporate governance adviser Pirc warning investors that some of its pay policies were “not best practice”, including allowing her to retain incentive awards when she left even though they had been designed to retain her services.
In its annual report Drummond Hall, who chairs its remuneration committee, said the retailer was reviewing its pay policies as its share-based bonus schemes concluded in 2016: “While the current bias to variable pay has served the company well for some years, it is conscious that some investors may prefer to see the arrangements simplified and more in line with current industry norms. The review will consider all such matters, together with more detailed developments such as the continuing evolution of holding periods.”
Drummond said it would contact its largest shareholders before finalising any proposals for submission at the 2016 annual meeting.
During her time at WH Smith Swann was credited with turning it around by cutting costs, moving away from less profitable goods such as CDs and DVDs and expanding its successful travel chain, which has shops in airports and railway stations. She was replaced by her long-term deputy, Steve Clarke, who earned £2.4m in cash, shares and other benefits during the year to 31 August after the retailer surpassed its financial targets. Robert Moorhead, its finance director, collected £2.2m. Pre-tax profits rose 8% to £114m on sales of £1.2bn.
