Investors in Wesfarmers Ltd (ASX: WES) shares would be licking their lips right now. The Aussie retail conglomerate is set to return a significant chunk of capital to shareholders after posting a $2,421 million full-year net profit after tax.
Wesfarmers bumped its full-year dividend up 17.1% to 178 cents per share in August and announced a $2.3 billion capital return to shareholders.
However, investors aren't the only ones set for a handy boost to the hip pocket. CEO Rob Scott is in line for a bumper pay day if approvals are granted at the company's annual general meeting (AGM).
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Why investors in Wesfarmers shares are set for a big payday
According to an article in The Australian, shareholders will vote on a $7.37 million performance bonus package for Scott.
That comes after a year in which Wesfarmers and its key brands weathered the COVID-19 pandemic. In fact, the Aussie conglomerate posted a 10% increase in revenue to $33,941 million.
Bunnings, Kmart Group and Officeworks all contributed to earnings growth despite on-again, off-again restrictions across the country.
Now investors will be asked to approve the performance reward package for the company CEO. It's been a solid year for Wesfarmers shares which have gained 27.4% in the past 12 months, not including dividends.
Scott is in line for two tranches of performance shares worth $7.37 million. The board is reportedly proposing $3.684 million in deferred performance stock and $3.684 million in performance shares.
The article notes that the performance shares agenda item last year passed with a 97.15 vote in favour from shareholders.
They'll be waiting for their own reward for holding Wesfarmers shares after a promised $2 per share capital return.
Foolish takeaway
There's something of a cash splash looming for Wesfarmers. CEO Rob Scott is in the box seat for $7.37 million of performance shares while investors await their own returns.
Wesfarmers shares are worth watching on the ASX as Australia eyes a re-opening of the economy following COVID-19 restrictions in 2020 and 2021.
