Australia’s Super Retail fires CEO over relationship disclosure
To steady operations, Chief Financial Officer David Burns has been appointed interim CEO.
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Australia’s Super Retail Group Ltd has sacked Chief Executive Officer Anthony Heraghty with immediate effect, citing a failure to properly disclose details about a workplace relationship. The move, announced after an internal investigation, sent the retailer’s shares sliding in early trade.
The board said Heraghty’s disclosures concerning his relationship with the company’s former Chief Human Resources Officer were “incomplete and not satisfactory”. Following an internal review supported by independent advisers, directors concluded that Heraghty had breached standards of governance and transparency expected of senior executives.
“The board will carefully consider the broader implications of these developments for the company and address any related matters as necessary,” the company said, adding that related legal proceedings remain ongoing.
Markets reacted swiftly, with Super Retail Group’s stock falling as much as 7.13% to A$16.03 in morning trade, the steepest one-day decline since February. The sell-off made the company the biggest laggard on Australia’s S&P/ASX 200 index on Monday, reflecting investor unease about leadership stability and strategy.
Heraghty, who took charge of the group in February 2019, had guided the retailer through major challenges including the COVID-19 pandemic, supply chain strains and shifts in consumer behaviour. According to the company’s latest annual report, he received total compensation of A$3.3 million (USD 2.2 million) in the last financial year.
The board confirmed that Heraghty would forfeit all incentive entitlements, including unvested long-term incentive awards and vested but unexercised rights, underscoring the seriousness of the breach.
To steady operations, Chief Financial Officer David Burns has been appointed interim CEO. Burns will oversee the group’s 700-plus outlets across Australia and New Zealand, including the flagship brands Supercheap Auto, Rebel, Boating Camping Fishing (BCF), and outdoor outfitter Macpac.
Super Retail Group, which reported annual revenues close to A$3.9 billion, is one of Australia’s largest specialty retailers. Analysts say the company now faces the dual challenge of maintaining momentum in a competitive market while searching for a permanent successor to Heraghty.
The episode comes just weeks after Nestlé removed its CEO Laurent Freixe over what it described as a romantic relationship with a subordinate, a dismissal Freixe has publicly denied.
