WH Smith is seeking to recover approximately £1.5 million in overpaid bonuses from two former top executives after an accounting scandal that overstated profits by as much as £50 million at its US arm. The British retailer confirmed Wednesday it has recalculated bonus payments for former chief executive Carl Cowling and former finance chief Robert Moorhead following the discovery of accounting errors that are now under investigation by the UK's financial watchdog.
Cowling, who resigned last month, received £516,000 too much in cash bonuses and 60,182 deferred share units valued at £374,933. Moorhead was overpaid £372,000 in cash and £272,493 worth of shares. The recalculations cover annual bonuses for 2023 and 2024, as well as long-term share bonuses from a scheme established in 2021.
The retailer confirmed last week that the UK's financial watchdog is investigating problems stemming from an accounting blunder and audit process failures at its North American business. Auditor Deloitte has verified the accounting irregularities.
Pay and Leadership Changes
Cowling's total compensation package plummeted to £724,000 for the year to August 2025, down from £2.71 million a year earlier. The company said no annual or long-term bonuses were paid to him for the past financial year. The board is currently searching for a permanent group chief executive.
Business Transformation
WH Smith has undergone significant restructuring, selling its high street chain of about 480 shops to Hobbycraft owner Modella Capital in June. The iconic WH Smith name is being phased out from British high streets and replaced by the brand TGJones. The company now concentrates exclusively on its 1,300 shops in global travel locations, including airports and train stations.
The slimmed-down business reported a pre-tax profit of £108 million for the year to the end of August, excluding one-off costs. The company informed investors last week it has enacted a remediation plan to strengthen governance and controls, align processes across the group, and implement cultural changes including enhanced training and monitoring.
Note: This article was created with Artificial Intelligence (AI).
