Corbett attacked over float bonus

WOOLWORTHS chairman Gerald Corbett was on the back foot as he unveiled flat first quarter like-for-like sales amid continuing attacks on directors' pay - especially his own. At its annual meeting in London, shareholders lashed out at Corbett's £500,000 bonus for 'successfully' floating the CDs-to-pick 'n' mix sweets retailer out of Kingfisher last year.

One shareholder demanded to be told how the demerger could have been 'successful' when it left Woolworths with £200m of debt, excess stock and large losses from new-style stores and its internet arm.

The 2.2m share options awarded to finance director Christopher Rogers and 2.6m to former managing director Keith Fleming also came under scrutiny. Fleming was ousted in January after failing to get the top job.

'The senior directors must be very pleased with the remuneration committee because, according to these figures, they are very weak,' said Cyril Gough, a shareholder from London.

First-quarter sales including the contribution of new stores rose from £586m to £620m, but same-store sales were flat. Sales at the main Woolworths chain fell by 1%, with City centre stores down 3%. The out-of-town big W chain and MVC music and video stores both grew 5%. Woolworths fell 5 1/2p to 44p, but it is still well ahead of the 25p where it started last August.

Corbett said the awards were a product of pay policies inherited from Kingfisher. Woolies had also introduced a new incentive scheme in line with its peers. He said Woolies had made a good start to May. He hopes rebranding the big W stores to link them more closely with Woolworths will revitalise the group. So will a decision to stop rolling out the 'general store' convenience format, cost cuts and measures to stamp out theft which is costing £50m a year.