Serious questions are being asked about the direction that Harvey Norman is taking, after a freeze on buying disrupted the market during the peak selling period, with questions also raised about the possible exit of senior management next year.

Some observers claim that a major management shakeup would be a good thing at the mass retailer, considering recent buying decisions and the time that senior management have been in key roles at Harvey Norman head office.

As of June 30, 2022, the retailer operated 195 franchised stores under the Harvey Norman, Domayne, and Joyce Mayne brands in Australia; and 109 company-operated stores under the Harvey Norman brand in New Zealand, Singapore, Malaysia, Slovenia, Croatia, Ireland, and Northern Ireland.

One person who could retire and has been behind a lot of the growth at Harvey is David Ackery an Executive Director at the mass retailer a position he took up 17 years ago on the 20 December 2005.

Ackery has been a key architect and responsible for a lot of the success at Harvey Norman especially when it came to electrical and consumer electronic goods.

Currently on holiday, a move that has surprised many in the industry, due to December being smack in the middle of the peak buying period, Ackery has overall executive responsibility for the relationship between the consolidated entity and Harvey Norman home appliances, home entertainment and technology franchisees and strategic partners.

In comparison arch-rival JB Hi Fi and The Good Guys it’s all hands-on deck with buyers stopped from taking time off during the peak period.

Some observers claim that Ackery could exit the business in 2023 after telling some suppliers that he would “retire” when his son had finished his schooling. That happened two years ago.

According to insiders, stock and buying decisions have become an issue at Harvey Norman with one PC vendor claiming that rushed decisions to replace a lack of HP computer stock led to them pushing other PC brands to up their stock levels, only for that stock not to sell through with the retailer now over stocked in PC products.

Now HP the market leader has new stock with the business struggling to get ranching with franchisees.

Several brands are now offering discounted stock to arch- rivals such as The Good Guys in an effort to offload the stock with several retailers now offering discount deals ahead of Christmas and New Year sales.

Chairman and founder of the $5.2 billion Harvey Norman chain is still going strong much to the angst of some observers.

When the Financial Review asked him when he would enjoy his passions of playing tennis and his racehorses full time, he said: “You know what I enjoy? It’s getting out there and making a buck every day and doing all the different things I get to do,”

“I’m never going to retire,” he said.

If Ackery does go he is set to be well off.

As the Executive Director of Harvey Norman, Ackery will pocket over $2,040,360 this year.

There are 4 executives at Harvey Norman getting paid more, with Kay Lesley Harvey Page having the highest compensation of $3,946,888 this financial year.

Katie Page also holds $82m worth of Harvey Norman Holdings stock directly under her own name, this is seen as a significant personal stake in the company.

The average management tenure at Harvey Norman is 16.7 years.

CEO Katie Page 65 has been with the business for 35 years, the wife of Chairman Gerry Harvey she is seen as being surrounded by an aging management team with some observers claiming “it’s time for a management change”.

Gerry Harvey & Katie Page,

She became CEO in February 1999.

Analysts recently claimed that Harvey Norman Holdings allocates a higher percentage of pay to salary in comparison to the wider industry.

“If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance” Simply Wall Street claimed.
During the past three years, Harvey Norman Holdings Limited has seen its earnings per share (EPS) grow by 23% per year.

Its revenue is up 1.4% over the last year.

As for the future analysts are suggesting that earnings growth is set to fall 10% next year as the effects of inflation kick in.