Home / Business and Economy / WH Smith Backs PwC Auditor Despite £30M Accounting Error
WH Smith Backs PwC Auditor Despite £30M Accounting Error
4 Jan
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.
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.
As of the current date, WH Smith's shares are still trading approximately 43 per cent lower than before the accounting issues came to light. The company's board is proceeding with its recommendation for PwC's re-election at the upcoming annual shareholder meeting, signalling a move towards stability despite the recent turmoil.
