Lovisa CEO’s giant pay outshines bigger retailers
Victor Herrero, chief executive at Brett Blundy’s fashion jewellery chain Lovisa, cemented his status as one of the highest-paid executives on the ASX by taking home about $30 million in the 2023 financial year.
Mr Herrero earned millions more than the CEOs of much bigger and better-known companies, including Wesfarmers boss Rob Scott’s $8.17 million.
Lovisa CEO Victor Herrero has made about $40 million in less than two years at the helm.
The bulk of Mr Herrero’s $29.1 million pay package comprises long-term incentives. At its annual result, the company called out pressure on the cost of doing business due to his LTI scheme.
Over the past two years, Mr Herrero was paid $5.2 million in cash and share-based payments valued at about $32 million – pocketing $37.2 million. He may receive up to $28 million this fiscal year, based on his performance.
The maximum potential value of his long-term incentives across his three-year term stands at $68 million, including $57.2 million in performance rights. The performance rights only have a 12-month lock, after which he can sell at any time.
Lovisa’s remuneration report issued on Thursday notes that, although he stood to receive $28 million in long-term incentives based on financial 2023 performance, only $26 million vested by mutual agreement.
“I just think for the size of the grant it’s not a particularly long time that he’s having to stick around for. To get value for $68 million you would want him locked in for a bit longer than four years at the longest,” one industry expert said.
Mr Herrero started as Lovisa CEO in November 2021 when he was paid a $1 million sign-on bonus, under the terms of which he was required to purchase an equivalent number of Lovisa shares.
He spent 13
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