WOW They are trying to find growth form ideas in...

WOW

They are trying to find growth form ideas in retailing

already have other retailing ventures. Hotels, BWS oulets, Home hard ware,Petrol

Below is part of the REM report for 2013. The directors REM is at risk at 60%. The directors "wage is geared for performance so thats why they put the "good part" of the food business at risk to create earnings growth.


excerp from the Annual report 2013 below

In terms of remuneration outcomes for Woolworths? key management personnel (KMP):
1. On average, at least 60% of the target remuneration mix is at risk, with the actual value of these at
risk components in FY13 ranging between 22% and 69% (see page 57);
2. Short term incentives in total are at a similar level to recent years, as a percentage of net profit
after tax (NPAT) before significant items (see page 64); and
3. On a cash basis, over a number of years the long term incentives granted via performance rights
returned a much lower value than previously delivered via options due to share price volatility and
earnings per share performance. However, recent vesting of long term incentive plans in July 2013
saw an improved vesting outcome due to a higher relative total shareholder return (TSR) ranking
against peer companies.



Executive remuneration framework
The executive remuneration framework is designed and continually reviewed to ensure that reward is:
1. Aligned to the broader business strategy;
2. Consistent with the remuneration strategy and principles; and
3. Driving the behaviours required to promote sustainable long term value for shareholders.
REMUNERATION STRATEGY
o Align reward to shareholder value creation
o Attract, motivate and retain key talent with market competitive reward
o Provide demanding measures for high performance, which link reward to the Company’s strategic and financial
goals
o Deliver reward that is differentiated by business and individual performance
REMUNERATION PRINCIPLES
Market Competitive Demanding Measures Performance Based Aligned to Shareholders
to ensure talent is attracted
and retained with
remuneration that reflects
the seniority and
complexity of roles
reflect both business
strategy and the external
environment
outcomes are linked to
the achievement of
financial, strategic, non
financial and individual
measures
short term and long term
incentives are linked
respectively to profit,
earnings per share and
relative total shareholder
return
APPLICATION OF REMUNERATION PRINCIPLES
External market data and
benchmarking is
undertaken to ensure
remuneration levels are
competitively set
Incentive targets are
stretch in nature to drive
upper quartile performance
A group gateway must be
met to qualify for any short
term incentive
Short term incentives are
based on group and
division results; and are
differentiated based on
individual performance
Individuals with
unsatisfactory
performance are not
eligible to participate in
any reward program
Short and long term
incentives are based on
performance measures that
have been chosen to drive
mid to long term shareholder
value creation
LTIP participants do not
receive dividends on
unvested equity
Unvested equity is generally
forfeited on resignation
Employment contracts have
limits on termination
payments and restrictive
covenants delaying future
employment by major

So WOW could come up with other "hair brained" ideas to grow the business.
eg Pharmacy, how about hospitals to help the hang overs from the BWS shop.