Woolworths CEO resigns, replacement announced amid price gouging pressure

Woolworths Group announced on February 21 that the CEO, who reportedly earned a pay package of $8.65 million in 2023, would step down in September 2024.

His replacement Amanda Bardwell will earn $2.15 million per year.

Ms Bardwell has been with the company for 23 years and will transition into the role on September 1, Woolworths said.

The share market was quick to react to Mr Banducci's resignation and a bleak financial outlook, falling more than 8 per cent by 12pm to $32.99 on February 21.

This was the steepest one day drop for the company's share prices since mid-May 2022, CommSec said.

Mr Banducci said "it has been a privilege to be a member of the Woolies team and one I have never taken for granted".

"We have a wonderfully talented and passionate team at Woolworths Group, as personified in Amanda Bardwell and I look forward to working with Amanda and our team over the next few months as we set ourselves up for the next chapter".

Woolworths Group chair Scott Perkins thanked Mr Banducci saying "the test of any CEO is to leave the business in much better shape than when they started.

"On that simple metric, history will judge Brad to have been one of Woolworths Group's finest leaders," he said.

Greens leader Adam Bandt has responded to the resignation saying "you can't run and hide, Brad".

"The Greens' Senate Inquiry into Coles, Woolworths and price gouging starts next month. We expect you to front up and face the music," he said on X (formerly Twitter).

Mr Perkins said Ms Bardwell led or assisted the building of eCommerce and loyalty initiatives for the supermarket.

"Amanda is a proven leader, business builder and modern retailer," he said.

"Most recently, under her leadership, WooliesX has gone from infancy in 2015 to a $7 billion market leading business.

"Amanda is highly respected throughout the organisation and I know, like Brad, will live our purpose and work hard to achieve Woolworths Group's full potential."

Mr Banducci sat down with ABC journalist Angus Grigg to answer questions over price gouging by the "cosy duopoly", Coles and Woolworths for a Four Corners broadcast on February 19.

Footage showed him walking out of the interview saying he was "done" when the journalist refused to cut a section of the conversation where Mr Banducci "impugned" the former head of the Australian Competition and Consumer Commission (ACCC).

"Rod Sims, the former head of the ACCC says that we have one of the most concentrated supermarket [sectors] in the world. Is he lying?" Mr Grigg asked.

"It's not true. Retired, by the way," Mr Banducci said.

"I don't think you would impugn his integrity and his understanding of competition law," the reporter said.

"I'm just saying, the world has got much more competitive since the terrific initiatives that were put in place back in, whatever it was, 2008 or [2009]," Mr Banducci said.

The CEO then asked the journalist to remove that section of the conversation from his reporting on Four Corners but Mr Grigg declined.

"I mean, he is retired, but I shouldn't have said that Angus. Are we going to leave it in there? If we are..." Mr Banducci said.

"Well we're on the record, you said it, let's move on," Mr Grigg said.

"Yeah, no I think I'm done guys. I do this with good intent, you know, I don't do this with bad intent," Mr Banducci said before leaving the frame to speak with his public relations (PR) team.

The Woolworths CEO returned to finish the interview.

Woolworths and Coles control 65 per cent of Australia's supermarket sector and in 2023, during a cost-of-living crisis, the profit margin at Mr Banducci's company expanded by an extra $318 million.