WH Smith will claw back just over £1.5m in cash and shares from its former chief executive and finance director, and has cut future bonus payments following an accounting scandal at its North American division.
In an annual report released after the market closed for Christmas, the retailer said it had recalculated bonus awards paid in 2023 and 2024, as well as a long-term incentive scheme from 2021, to former chief executive Carl Cowling and former finance director Robert Moorhead.
Cowling, who stepped down last month, was found to have been overpaid £516,000 in cash and 60,182 deferred and long-term incentive shares worth £374,933 at today’s share price. Moorhead, who left in 2024, received excess payments of £372,000 in cash and 43,739 shares valued at £272,493.
The company has also cancelled Cowling’s annual and long-term bonus for the year to August 2025, cutting his annual remuneration to £724,000 from £2.7m the previous year. Cowling will remain an employee until 28 February and will then receive monthly salary payments through the remainder of his 12-month notice period, potentially subject to mitigation. This could amount to up to £711,000 before benefits and pension. He will also retain some long-term incentive shares that may vest in future years depending on company performance.
Meanwhile, WH Smith said Moorhead is no longer classified as a “good leaver”, meaning his deferred bonus shares, worth around £1.2m, are now expected to be cancelled in full.
