Why is WH Smith re-electing its auditor PwC despite an accounting blunder?

WH Smith's board is recommending PwC's re-election, believing stability with the auditor is necessary despite a past oversight that led to a £30 million profit overstatement.

How much money is WH Smith trying to recover from former executives?

WH Smith is seeking to claw back over £1.5 million in bonuses and stock awards from its former CEO Carl Cowling and ex-CFO Robert Moorhead.

What was the impact of the accounting error on WH Smith's share price?

The accounting blunder, which overstated profits by £30 million, caused WH Smith's shares to plunge over 40 per cent, and they remain significantly lower.

Home / Business and Economy / WH Smith Backs PwC Auditor Despite £30M Accounting Error

WH Smith Backs PwC Auditor Despite £30M Accounting Error

4 Jan

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Summary

WH Smith recommends auditor PwC's re-election despite a £30 million profit overstatement.
The company seeks to claw back over £1.5 million in bonuses from former executives.
WH Smith shares remain significantly lower following the accounting scandal.

WH Smith Backs PwC Auditor Despite £30M Accounting Error

Retail giant WH Smith has recommended shareholders reappoint its auditor, PwC, despite the firm's oversight of a substantial accounting error. This error, which involved overstating US business profits by £30 million due to early recognition of supplier income, caused WH Smith's share price to plummet by over 40 per cent. The company was consequently forced to delay its annual results.

In the wake of the scandal, WH Smith is attempting to recover more than £1.5 million in bonuses and stock awards. This includes significant sums from former CEO Carl Cowling and ex-CFO Robert Moorhead. Cowling is targeted for £516,000 in cash bonuses and shares worth approximately £384,563, while Moorhead faces claims for a £372,000 cash bonus and shares valued at around £279,492.