Former WANdisco Executives Asked to Repay Bonuses Following Fraud Discovery
WANdisco’s board has requested that former executives David Richards and Erik Miller repay £647,000 in annual bonuses they received prior to the discovery of a significant fraud, according to sources. The data software group’s value has plummeted following the exposure of the apparent fraud, leading shareholders to express anger over the bonus awards. The bonuses, disclosed in WANdisco’s recent annual report, brought the total pay packages of Richards and Miller to $1.14 million and $551,000, respectively.
Since the discovery of the sales and accounting scam in March, WANdisco’s shares have been suspended, and Stephen Kelly, former CEO of Sage Group, was appointed as interim boss. Kelly and the board secured $30 million in new funding to rescue the company, and his appointment as permanent CEO was confirmed last week.
Responding to inquiries, a WANdisco spokesperson stated that the board has written to the former executives requesting the return of the bonuses, in line with shareholder sentiment and as the right course of action. It remains unclear whether the company has legal powers to enforce the repayment.
WANdisco’s annual report also revealed that the company agreed to sponsor Sheffield Wednesday FC for the upcoming season, paying over $360,000 on behalf of EyUp Skills Limited, a company owned by Richards and his wife. An additional identical sum is contingent on certain post-year end outcomes.
WANdisco, based in Sheffield and Silicon Valley, is a data activation platform that utilizes cloud-based analytics technology to assist corporate clients in decision-making. In early March, the company had a market capitalization of over £890 million, with shares rising more than fivefold in the past year. However, since trading resumed after the suspension, the company’s value has sharply declined, with shares currently trading at around 97.7p, resulting in a market capitalization of approximately £103 million.
Neither Richards nor Miller could be reached for comment.