Woolworths CEO cashes in R38 million worth of shares

Roy Bagattini, the CEO of Woolworths, has sold 700,000 shares worth just over R38 million in three separate transactions.

In a SENS announcement, Woolworths said that Bagattini engaged in several on-market transactions where he sold millions of shares as part of a portfolio rebalancing.

This included the sale of 420,000 shares for R23 million on 10 June, followed by 112,000 shares for R6 million on 11 June and 168,000 shares for R9 million.

The sale of these 700,000 shares pocketed Bagattini R38 million in cash.

Bagattini joined the group as CEO in February 2020. Before this, he was the President of the Americas for Levi Strauss & Company, covering the US, Canada and Latin America.

He previously worked across Asia and Africa for Levi Strauss, the Carlsberg Group and SABMiller.

Despite his track record of managing companies internationally, Bagattini’s name has appeared regularly in talks about executive pay in a country facing extreme income inequality.

The latest analysis from Just Share showed that Baggatini’s remuneration for the 2023 financial year reached R122 million, 1,308 times the company’s lowest internal wage of R93,600.

While lower-level employees are often limited to just wages, executive remuneration usually includes short-term incentives (STIs), long-term incentives (LTIs) and hefty bonuses.

“The sector undoubtedly plays an important role in employing to low- and semi-skilled workers,” said Just Share’s senior inequality analyst Kwanele Ngogela.

“It is nevertheless crucial to also recognise the contribution of the extreme vertical wage gaps which characterise these companies to the country’s overall high levels of inequality.”

Bagattini’s remuneration dropped by 47.7% in the 2024 financial year to R65.3 million as the group continues to face challenges in its apparel business in South Africa, New Zealand and Australia.

Nevertheless, the high pay of executives at the company’s Annual General Meeting in 2024 drew the ire of several shareholders.

As reported by News24, investors, who collectively hold over one-third of Woolworths, opposed its remuneration policy.

This marked the second year in a row that the group was unable to meet the 75% threshold on its remuneration policy.

Despite the vote being non-binding, it still reflects that many shareholders are unhappy with the large amount that executives are earning amidst the company’s struggles.

Baggitini’s recent sale of his shares may only make up a fraction of his total worth, but it is still far higher than what many Woolworths employees will see in their lifetime.