Coles' fresh food hero is staying on

    by: Amy Wilson-Chapman
    From: PerthNow
    May 29, 2012




IAN McLeod, the $15 million man responsible for turning around ailing supermarket Coles, is staying put.   :-?

Coles’ parent company, Wesfarmers, announced today the managing director would be paid an undisclosed sum to stay on after his five-year, fixed-term contract was up at the end of June.

“Ian will move to a new employment contract consistent with other senior executives within the Wesfarmers Group, which includes a six-month notice period,” said Wesfarmers managing director Richard Goyder.

Mr McLeod was one of the highest paid executives in Australia last financial year - earning $15.6 million thanks to an $11.1 million bonus. He is expected to earn between $35 million and $40 million for his five years at Coles, depending on the performance of the supermarket major.   :(



Having been recruited from the UK in 2008 by Mr Goyder, the supermarket boss led the company to a 21 per cent jump in earnings for the 2011 financial year.

Mr Goyder said he was pleased the supermarket boss was keen to stay on after the final stage of the supermarket’s five-year turnaround.

“Ian and his team have achieved outstanding results over the past four years, delivering at Coles a sustained period of industry out-performance in both sales and profit growth,” Mr Goyder.

Wesfarmers shares were up 1.29 per cent, or 37 cents, at $29.03 at 1232 AWST.


Comments on this story

    1Grumpy of WA Posted at 7:16 PM May 29, 2012

        Well Mr $15 million dollar man, you've done absolutely nothings in quite a few Coles stores that I visit on a regular (not now) basis. If fact you have achieved something with your $15 million, driven me away never to shop in a Coles store ever again, fruit, meat and grocery items way too dear, can't buy what I've bought for years in Coles, sick of standing (when I went to Coles) waiting to get my items through a cash register. Bye bye Coles for ever, hello Woolies, my local green grocer for fresh veggies/fruit sells them cheaper than the big 3, why is this with their massive buying power? greed.    :(

Yes exactly right 1Grumpy, what do these overpaid CEOs do to earn their money.    :(

wrote on May 30^th, 2012 at 7:28am:

Yes exactly right 1Grumpy, what do these overpaid CEOs do to earn their money.    :(

21% increase in profits last year?
Huge increases in profits and sales in the last 5 years.
Responsible for turning around ailing supermarket Coles.

Read the article mate.

Verge wrote on May 30^th, 2012 at 10:25am:

wrote on May 30th, 2012 at 7:28am: Yes exactly right 1Grumpy, what do these overpaid CEOs do to earn their money.    :( 21% increase in profits last year? Huge increases in profits and sales in the last 5 years. Responsible for turning around ailing supermarket Coles. Read the article mate.

Yes but has his pay rises been above CPI ??

Sounds like it :(

Verge wrote on May 30^th, 2012 at 10:25am:

wrote on May 30th, 2012 at 7:28am: Yes exactly right 1Grumpy, what do these overpaid CEOs do to earn their money.    :( 21% increase in profits last year? Huge increases in profits and sales in the last 5 years. Responsible for turning around ailing supermarket Coles. Read the article mate.

If these coles dudes are so good then why aren't they competing in overseas markets ?

They get away with ripping people off here until someone like Aldis comes along and shows them how to run a real business ;)

Sir lastnail wrote on May 30^th, 2012 at 11:45am:

Verge wrote on May 30th, 2012 at 10:25am: wrote on May 30th, 2012 at 7:28am: Yes exactly right 1Grumpy, what do these overpaid CEOs do to earn their money.    :( 21% increase in profits last year? Huge increases in profits and sales in the last 5 years. Responsible for turning around ailing supermarket Coles. Read the article mate. Yes but has his pay rises been above CPI ?? Sounds like it :(

I think you will notice a majority of his salary is performance based, which he has obviously achieved in.

wrote on May 30^th, 2012 at 7:28am:

Yes exactly right 1Grumpy, what do these overpaid CEOs do to earn their money.    :(

They increase the profits for their company.

Interestingly former Victorian Liberal Premier, Jeff Kennett is mounting a bit of an investigation into allegations that Coles may be engaging in unethical, and possibly illegal, business practices.
What is alleged is that suppliers are compelled to show a Coles representative ALL their financials, to work out the actual unit costs for whatever they are selling to Coles.
Coles then tells the supplier they are allowed only to apply a 3% profit on the product, or else they will remove all that companies products from all Coles Group stores.

Now if the CEO can be proved to have instigated and implemented, such a system, he should be offered a government award, as well as his usual bonus.
This could, if allegations turn out to be validated,                                                   see him offered free room and board from the government.

Of course, nobody really believes that big busssiness CEO's would ever engage in unethical practices, let alone illegal, do they???????????? ;) ;) ;) ;) ;) ;)

Anyone could make profit when your company holds a monopoly

Verge wrote on May 30^th, 2012 at 11:48am:

Sir lastnail wrote on May 30th, 2012 at 11:45am: Verge wrote on May 30th, 2012 at 10:25am: wrote on May 30th, 2012 at 7:28am: Yes exactly right 1Grumpy, what do these overpaid CEOs do to earn their money.    :( 21% increase in profits last year? Huge increases in profits and sales in the last 5 years. Responsible for turning around ailing supermarket Coles. Read the article mate. Yes but has his pay rises been above CPI ?? Sounds like it :( I think you will notice a majority of his salary is performance based, which he has obviously achieved in.

Still way above CPI !! He doesn't own the company. He just works for them like all of the other lowly paid workers. Shouldn't get anymore than the CPI in my opinion !!

Sir lastnail wrote on May 30^th, 2012 at 11:57am:

Verge wrote on May 30th, 2012 at 11:48am: Sir lastnail wrote on May 30th, 2012 at 11:45am: Verge wrote on May 30th, 2012 at 10:25am: wrote on May 30th, 2012 at 7:28am: Yes exactly right 1Grumpy, what do these overpaid CEOs do to earn their money.    :( 21% increase in profits last year? Huge increases in profits and sales in the last 5 years. Responsible for turning around ailing supermarket Coles. Read the article mate. Yes but has his pay rises been above CPI ?? Sounds like it :( I think you will notice a majority of his salary is performance based, which he has obviously achieved in. Still way above CPI !! He doesn't own the company. He just works for them like all of the other lowly paid workers. Shouldn't get anymore than the CPI in my opinion !!

If the lowly paid would be happy to go to performace based pay, then so be it.

Verge wrote on May 30^th, 2012 at 12:17pm:

Sir lastnail wrote on May 30th, 2012 at 11:57am: Verge wrote on May 30th, 2012 at 11:48am: Sir lastnail wrote on May 30th, 2012 at 11:45am: Verge wrote on May 30th, 2012 at 10:25am: wrote on May 30th, 2012 at 7:28am: Yes exactly right 1Grumpy, what do these overpaid CEOs do to earn their money.    :( 21% increase in profits last year? Huge increases in profits and sales in the last 5 years. Responsible for turning around ailing supermarket Coles. Read the article mate. Yes but has his pay rises been above CPI ?? Sounds like it :( I think you will notice a majority of his salary is performance based, which he has obviously achieved in. Still way above CPI !! He doesn't own the company. He just works for them like all of the other lowly paid workers. Shouldn't get anymore than the CPI in my opinion !! If the lowly paid would be happy to go to performace based pay, then so be it.

they are performance based. If they don't turn up to do the job they don't get paid ;)

Well put Nail, he shouldn't get more than CPI.    ;)

wrote on May 30^th, 2012 at 8:26pm:

Well put Nail, he shouldn't get more than CPI.    ;)

Getting much more than the CPI is an outrage !!

Verge needs to be reminded of the manager of a Korean ship building yard who is in charge of 20,000 workers and only gets four times their pay ;) That is how a real CEO runs a company ;)

http://sixtyminutes.ninemsn.com.au/stories/richardcarleton/259329/ship-ahoy


Quote:

RICHARD CARLETON: By now, you're probably thinking that Korea can do all this because they pay their staff peanuts. Well, that's what I thought and I was wrong, too. True, they work a 44-hour week. But they are very well-paid. I asked a manager at Daewoo just how much the average shipyard worker earns in a year. DAEWOO MANAGER: US$50,000 for labour. RICHARD CARLETON: US$50,000 for a labourer? DAEWOO MANAGER: Yes. That's average. RICHARD CARLETON: That's almost A$70,000 for a shipyard worker? DAEWOO MANAGER: Yes. RICHARD CARLETON: That's very high. DAEWOO MANAGER: Yes, I think so. RICHARD CARLETON: Now considering $40,000 or $50,000 is a good salary in Australia, Korea can hardly be called a low-wage country. The Koreans I spoke to were rightly proud of all this and more than happy to talk about it. But they were a little uncomfortable discussing just one thing — the boss's salary. So I asked Peter Bartholomew. If the average welder is getting $70,000, what is the boss getting — the man with 20,000 employees? PETER BARTHOLOMEW: Maybe three times that, four times that, but not much more than that, frankly speaking. RICHARD CARLETON: No $20 million? PETER BARTHOLOMEW: No, not even $1 million, thank you. The money they make goes back to making more money. It goes, really, back into the core of the shipyard. RICHARD CARLETON: That's sort of perfect capitalism in the theory, isn't it? PETER BARTHOLOMEW: I don't know if it's perfect but it sure works.

Good post Crook,
& the checkout chick gets  $15 an hour & she does all the work.

It's criminal to be taking $40 million out of a business by these fat cats.

Bobby. wrote on May 30^th, 2012 at 9:40pm:

Good post Crook, & the checkout chick gets  $15 an hour & she does all the work. It's criminal to be taking $40 million out of a business by these fat cats.

I'm just glad that Aldis exists and is a viable alternative to high  prices from these ripoff merchants and their yuppy polished floor board experience !!