Gerry Harvey Gives Missus Extra Million To Run Harvey Norman, Questions asked.
Tomorrow Gerry Harvey fronts Harvey Norman investors at his annual general meeting, where investors are set to take him on over the pay rise.
During the past few years Harvey Norman operating costs have risen 33% with senior management such as David Ackery and John Slacksmith now taking home multimillion dollar salary packages.
Last year Harvey Norman got a big lift from rising property prices that saw his profits jumped 49% to $212. This is half what the company earned in 2007.
While revenue have increased 14% since then operating costs have ballooned.
A recent ASX release said investors had requested a “clarification” of the chief executive’s pay packet, as detailed in the 2014 remuneration report.
The 50 per cent jump in Page’s base pay, from $1.43 million to $2.07 million, is set to be a big talking point tomorrow and so is the rise in other executive pays.
Management at the big retailer claim that given the size of its workforce, market cap, and earnings, that Katie should get a salary top up. The big question is will the salary be reduced if profits fall.
It still put Page just below the average of the Specific Retail Comparator Group, Harvey Norman said.
The company owns 81 of the 283 sites it operates, primarily the non-shopping centre based sites in Australia and New Zealand, and the portfolio has a balance sheet value of $2.3bn based on market valuations taken every three years.
However, the properties are mostly tenanted by Harvey Norman franchisees and a sustained drop in profits would lower the value of these stores – significantly claim analysts.
There is also speculation that a major venture capitalist is currently running the ruler over Harvey Norman, ChannelNews was recently approached by an executive hired to work on the project.