Own Wesfarmers (ASX:WES) shares? It’s about to be payday…for you and the CEO

Investors and the CEO are eyeing a significant pay day.
The post Own Wesfarmers (ASX:WES) shares? It’s about to be payday…for you and the CEO appeared first on The Motley Fool Australia. –

Investors in Wesfarmers Ltd (ASX: WES) shares would be licking their lips right now. The Aussie retail conglomerate is set to return a significant chunk of capital to shareholders after posting a $2,421 million full-year net profit after tax.

Wesfarmers bumped its full-year dividend up 17.1% to 178 cents per share in August and announced a $2.3 billion capital return to shareholders.

However, investors aren’t the only ones set for a handy boost to the hip pocket. CEO Rob Scott is in line for a bumper pay day if approvals are granted at the company’s annual general meeting (AGM).

Why investors in Wesfarmers shares are set for a big payday

According to an article in The Australian, shareholders will vote on a $7.37 million performance bonus package for Scott.

That comes after a year in which Wesfarmers and its key brands weathered the COVID-19 pandemic. In fact, the Aussie conglomerate posted a 10% increase in revenue to $33,941 million.

Bunnings, Kmart Group and Officeworks all contributed to earnings growth despite on-again, off-again restrictions across the country.

Now investors will be asked to approve the performance reward package for the company CEO. It’s been a solid year for Wesfarmers shares which have gained 27.4% in the past 12 months, not including dividends.

Scott is in line for two tranches of performance shares worth $7.37 million. The board is reportedly proposing $3.684 million in deferred performance stock and $3.684 million in performance shares.

The article notes that the performance shares agenda item last year passed with a 97.15 vote in favour from shareholders.

They’ll be waiting for their own reward for holding Wesfarmers shares after a promised $2 per share capital return.

Foolish takeaway

There’s something of a cash splash looming for Wesfarmers. CEO Rob Scott is in the box seat for $7.37 million of performance shares while investors await their own returns.

Wesfarmers shares are worth watching on the ASX as Australia eyes a re-opening of the economy following COVID-19 restrictions in 2020 and 2021.

The post Own Wesfarmers (ASX:WES) shares? It’s about to be payday…for you and the CEO appeared first on The Motley Fool Australia.

Should you invest $1,000 in Wesfarmers right now?

Before you consider Wesfarmers, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Wesfarmers wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Why the Woolworths (ASX:WOW) share price has outperformed Wesfarmers so far this year
Here’s why the Wesfarmers (ASX:WES) share price is in focus today
4 ASX shares just got a massive boost

These ASX 200 dividend shares are about to dish out $40bn to shareholders

How have ASX retail shares performed during the August 2021 earnings season?

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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