Scandal-hit WANdisco calls on former bosses to return £650,000 bonus payments
The Sheffield and California based business paid a combined $832,000 (£646,900) in bonuses to chief executive and chair David Richards and chief financial officer Erik Miller for their work in 2022 – despite the company recording a a $31.6m (£24.5m) loss.
Mr Richards was paid a $588,000 bonus on top of his $514,000 salary, while Mr Miller got a $244,000 bonus in addition to a salary of $269,000.
Both men have subsequently left the company after it came to light earlier this year that an unnamed single sales employee had been responsible for over-stating revenue and sales figures by millions of pounds.
An independent investigation found recognised revenue of $14.9m and sales bookings of $115m were “false” and should have been $9.7m and $11.4m respectively.
The Financial Conduct Authority is also conducting its own investigation into what happened.
A spokesperson for the company said: “In line with shareholder sentiment, and as simply the right thing to do, the board of WANdisco confirms that it has written to former executives of the company requesting that bonuses paid for [the last financial year] are returned.
"It is clear that the bonuses paid are significantly at odds with the realities the company has faced."
Neither Mr Richards or Mr Miller could be reached for comment.
The company’s 177-strong workforce has been reduced by 30 per cent in light of the revenue figures scandal.
In June, shareholders backed plans for a $30m equity fundraise which was completed last month.
WANdisco also said last month that board members had not been informed about a shirt sponsorship agreement with Sheffield Wednesday which will see the company potentially pay £562,000 to the club.
Wednesday will be wearing shirts sponsored by EyUp – an organisation run by Mr Richards and his wife Jane.