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The South African
6 days ago
- Business
- The South African
Woolworths CEO's salary highlights shocking staff pay gap
Woolworths CEO Roy Bagattini has come under renewed scrutiny after selling 700 000 shares in the company over three days, netting more than R38.4 million – an amount over 410 times more than what Woolworths' lowest-paid employee earns in an entire year . The lowest-paid full-time worker at Woolworths earns R93 600 per year, according to data from shareholder advocacy group Just Share . In comparison, Bagattini earned R38 million in just three days . Bagattini's share sale : 10 June : R23.17 million 11 June : R6.15 million 12 June : R9.12 million Total : R38 438 665 : Entry-level Woolworths employee annual wage: That means Bagattini earned in one hour what the average entry-level employee would need almost two years to make – assuming a 40-hour workweek. This is not the first time Bagattini's earnings have drawn attention. In the 2023 financial year, he received R122 million in total remuneration – 1 308 times more than the company's lowest-paid staff. Though that dropped to R65.3 million in 2024, criticism has remained strong, especially amid South Africa's worsening cost-of-living crisis. '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 . At the company's 2024 Annual General Meeting, more than a third of Woolworths shareholders voted against its remuneration policy – the second year in a row the retailer failed to achieve the 75% approval threshold needed to pass its pay structure unopposed. Bagattini's R38 million cash-out has further amplified calls for executive pay reform, with critics arguing that the company's pay structure is out of step with the economic reality of most South Africans. Although Woolworths says the sale was part of a portfolio rebalancing strategy, the optics of a CEO pocketing millions while lower-level employees earn less than R8 000 a month have drawn ire from labour groups, civil society organisations, and shareholders alike. At the time of publication, Woolworths had not issued a public response to the backlash over Bagattini's share sale or the widening income gap it represents. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
The South African
13-06-2025
- Business
- The South African
Woolworths CEO Roy Bagattini nets R38 million amid pay controversy
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 419 966 shares sold for 11 June: 111 664 shares sold for R6.15 million 111 664 shares sold for 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. 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. '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. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
