Former WANdisco executives have so far robustly rejected request to repay bonuses, says company

Sky News says it understands David Richards, the company’s co-founder and former CEO, and ex finance chief Erik Miller are resisting a request from WANdisco’s board to repay the $832,000 (£647,000) they were awarded for last year.

The annual bonuses took the respective pay packages of Mr Richards and Mr Miller to $1.14m (£886,100) and $551,000 (£428,300) respectively.

The bonuses have triggered an angry response from WANdisco shareholders, who have seen the value of their holdings plunge after the company uncovered “potential fraudulent irregularities” in its reported sales and revenues in March.

Responding to the Sky News report, a spokesman for the Sheffield-headquartered business told The Yorkshire Post: “While the former executives have so far robustly rejected our request for repayment, the board firmly believes this should be the right and fair outcome for shareholders and remains committed to pursuing it.”

Mr Richards did not comment in response to the Sky News report. Mr Miller could not be contacted for comment.

In March, the data specialist said top bosses at the group had found that “significant, sophisticated and potentially fraudulent irregularities with regard to received purchase orders and related revenue and bookings, as represented by one senior sales employee, have been discovered”.

“These irregularities give rise to a potential material mis-statement of the company’s financial position,” it said.

A statement issued in April by WANdisco in connection with the investigation said: “It remains the case that the evidence identified supports the initial view that the irregularities are as a result of the actions of one senior sales employee only.”

In April it was also revealed that Mr Richards and Mr Miller had decided to step down from the WANdisco board and leadership team.

Speaking at the time, Kenneth Lever, Executive Chairman, said: "Over the years David and Erik have contributed significant time and effort to establishing and developing WANdisco. They remain meaningful shareholders in the business and continue to believe in the long-term, successful future for this company and its unique technology."

Speaking in April, Mr Richards said: “I am sad to be leaving WANdisco after 18 extremely enjoyable years. I remain a passionate supporter and significant shareholder of the company."

Last month, WANdisco announced the successful completion of a $30m equity fundraise and the renewal by Tesco Stores Ltd of its software support and maintenance contract.