Woolworths CEO Roy Bagattini has sold 700 000 shares in the company in a series of transactions that netted him over R38.4 million, according to a SENS announcement released by South African retail giant.
The transactions took place over three consecutive days:
- 10 June: 419 966 shares sold for R23.17 million
- 11 June: 111 664 shares sold for R6.15 million
- 12 June: 168 370 shares sold for R9.12 million
The company stated that the share sales formed part of a portfolio rebalancing strategy, with Bagattini engaging in on-market sales.
Bagattini, who took the helm at Woolworths in February 2020 after serving as President of the Americas at Levi Strauss & Co., has become a prominent figure in the ongoing national debate about executive pay and income inequality in South Africa.
Executive pay under scrutiny
The CEO’s latest share sale comes as Woolworths continues to face growing criticism over its remuneration policies, especially at a time when many South Africans are grappling with rising living costs and stagnant wages.
According to shareholder advocacy group Just Share, Bagattini received R122 million in total compensation in 2023, making his pay 1 308 times higher than Woolworths’ lowest-paid employee, who earns R93 600 annually.
In 2024, Bagattini’s remuneration was cut to R65.3 million, a 47.7% decline, largely due to challenges facing the company’s apparel operations in South Africa, New Zealand, and Australia.
However, this figure still sparked backlash at the group’s 2024 Annual General Meeting, where over a third of shareholders voted against the group’s remuneration policy.
This was the second consecutive year that Woolworths failed to meet the 75% approval threshold required to pass its pay policy unopposed.
While the vote was non-binding, it signaled deep concern among investors about excessive executive compensation, particularly in a company battling retail headwinds.
Public reaction
“It is crucial to recognise the contribution of the extreme vertical wage gaps which characterise these companies to the country’s overall high levels of inequality,” said Kwanele Ngogela, senior inequality analyst at Just Share.
Although the CEO’s share sale represents only a portion of his total wealth, the amount exceeds what many Woolworths employees may earn in a lifetime, adding fuel to an already heated national conversation.
At the time of publishing, Woolworths had not issued a statement responding to public concern regarding the transaction or the broader debate about executive pay.
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