$1m pay rise for Wesfarmers chief
Coles chief Ian McLeod. Picture: Michael Wilson/ The West Australian

Coles boss Ian McLeod remains the highest paid executive at conglomerate Wesfarmers, despite taking a slight pay cut last financial year.

The company’s latest annual report shows Mr McLeod’s pay packet still remains substantially larger than his boss, Wesfarmers chief Richard Goyder.

Mr Goyder’s total remuneration rose by more than $1 million to $8.01 million in 2011/12 and will remain frozen this financial year.

However his pay packet pales in comparison with Mr McLeod’s.

The Coles boss took home $14.8 million in 2011/12, slightly lower than the $15.6 million he received the previous year.

Mr McLeod was hired in 2008 as part of a five-year turnaround plan for the supermarket giant.

The annual general report, released on Thursday, states that Mr McLeod has a special long term incentive plan tied to the turnaround of Coles.

For his work in overseeing a 16.4 per cent increase in Coles’ earnings and an 11.5 per cent rise in return on capital, Mr McLeod received $10.9 million in long-term incentives during 2011/12.

In the previous year he received $8.2 million in long term incentives after meeting all performance targets.

Mr McLeod has agreed to stay on at Coles after his five-year contract expires in 2013, but his salary will be significantly reduced.

Among Wesfarmers’ other top executives, former Target boss Laura Inman received a total of $2.02 million 2012/11, which was less than half the $4.1 million she made the previous year.

Ms Inman left Wesfarmers in early 2012 and is now the chief executive of Australian surfwear retailer Billabong.

Wesfarmers’ annual report also showed non executive director fees were increased by four per cent on January 1, 2012.

The company will ask shareholders to agree to increase their maximum aggregate remuneration by $300,000 to $3.3 million at the annual general meeting next month.

Shareholders will also vote on a move to increase the number of non executive directors by two to allow for effective board succession.

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