Wesfarmers chief executive Richard Goyder has taken a substantial pay cut with a halving in his short-term incentive payments after a year in which his Coles-owning conglomerate took a hefty hit to profits.

Goyder’s base salary of $3.348 million has barely changed from the prior year, the company’s annual report shows.

However, his short-term incentives amounted to $1.05 million in cash for 2015/16, down from $2.1 million in the prior year.

Goyder’s total remuneration package amounted to about $5.5 million, down from $9.9 million in 2014/15.

His pay cut comes after the Perth conglomerate, which owns Coles, Bunnings, Kmart, Target, Officeworks and coal mines, suffered a 83.3 per cent drop in full-year profit.

In August, the group reported a profit of $407 million after it wrote down the value of its Target department stores and Curragh coal mine by $2.2 billion. Its underlying profit for the 12 months to June 30, excluding the writedowns, dropped 3.6 per cent to $2.35 billion.

Coles managing director John Durkan’s total pay packet rose nearly 14 per cent to $5.288 million, while Bunnings managing director John Gillam’s remuneration package was down slightly from $4.8 million to $4.4 million.

Target and Kmart boss Guy Russo received a pay rise with his total remuneration package up 5.5 per cent to about $4.04 million.

The group’s chief financial officer Terry Bowen’s total pay packet of about $3.55 million was down from $5.31 million.

AAP

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