Woolworths CEO Roy Bagattini missed out on a performance bonus pay cheque for the 2025 financial year after the retailer failed to meet the financial and strategic targets required to trigger the incentive, according to new remuneration committee chair Clive Thomson.
Bagattini, who has led the group since 2020, received no annual performance payout, whereas he took home R4.8m in the previous financial year.
Nonetheless, his total remuneration for the year came in at nearly R80m after being inflated by the final instalment of a one-off sign-on share allocation granted when he joined the company.
Thomson said that allocation, worth R38.8m, matured this year.
“The CEO received a sign-on share allocation as a contractually agreed component of the overall package required to attract an experienced, international business leader to take over the helm of the group in January 2020,” he said.
“The CEO was based in the US at the time with a dollar-denominated remuneration package and multiple share allocations that would vest in the short to medium term.”
He said the allocation was intended to make up for shares Bagattini lost when he left his previous employer while also binding him to strict restraints of trade both locally and in Australia.
Bagattini replaced Ian Moir, who was criticised for the value destruction caused by the purchase of Australian operation David Jones for more than R20bn.
Before joining Woolworths, Bagattini was with Levi Strauss & Co, where he was executive vice-president and president of Americas. Before that, he served as the president of Asia and Africa for the Carlsberg Group.
Excluding the sign-on shares, Bagattini’s remuneration dropped almost 27% to R41m, reflecting the weaker performance flagged in the report, Thomson said.
He was awarded 55% of a long-term incentive tied to performance conditions dating back to 2022.
Meanwhile, the star of the group, the food division, posted sales growth of 11% and secured its CEO, Sam Ngumeni, a performance bonus of more than R8m — double his 2024 financial year payout.
Woolworths has also set a minimum wage of R45 per hour, translating to R93,600 a year for full-time store employees.
The move follows its R120m “Just Wage Initiative” launched in 2019 aimed at improving retention, service and long-term sustainability through fair pay and flexible benefits.
Woolworths now employs 40,168 staff across 13 countries, up from 38,623 in the previous year.
The group’s Country Road business in Australia remained under pressure, with sales down 5.4% and margins hit by restructuring at a difficult time.
Group turnover rose 6.1% to R81bn, supported mainly by the SA operations. Woolworths said it is now shifting from fixing its foundations to focusing on sustainable growth, with the food division remaining the standout performer.
“Over the past few years, we have taken deliberate steps to fix, strengthen and reposition our group. This fundamental phase in establishing the requisite capabilities and foundations for long-term success is now largely complete,” Bagattini said in his letter to shareholders.
“Financial year 2026 will therefore mark a decisive shift as we move into the next chapter of our journey: to optimise, invest and grow. While our overarching strategies remain intact and we continue to improve and strengthen our foundations, our businesses are now increasingly focused on driving sustainable growth and enhanced execution.”
Correction: October 1 2025
An earlier version of this story said Woolworths was present in 41 countries; the correct number is 13 countries.
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