Fines and legal costs related to two separate OFT probes dragged Asda’s profits down to £560 million last year, but chief executive Andy Bond saw his pay packet bulge by 55 per cent to more than £1m.
Pre-tax profits at the Leeds-based UK number-two supermarket chain fell from £592m in 2006 - as the Office of Fair Trading probed allegations of price-fixing. Sales were up to £16.8 billion in the 12 months to December 31, from £15.7bn the year before.
The salary of Bond, however, increased from £691,000 to £1.07m in the year, said accounts filed at Companies House yesterday.
The directors report that was filed with the accounts said Asda remains ahead of internal growth targets. “The result was significantly affected by… an allowance for legal matters in connection with the OFT investigations on milk and tobacco,” Asda said.
Asda did not disclose the exact cost of the investigations into its dealings in the dairy and tobacco sectors, as it claims disclosure would be “prejudicial”.
No comments yet