Asda faces mass exodus as top team seek new roles

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Asda chief financial officer Rob McWilliam has stepped down from his role, as a number of Asda’s senior staff prepare to quit after receiving their final payouts from the Walmart share scheme.

Asda announced that McWilliam, who joined the business on a fixed term basis to support it through the proposed merger with Sainsbury’s, has now completed his contract and will be replaced by deputy CFO John Fallon.

Chief executive Roger Burnley said in an announcement to colleagues this morning: ”As many of you know, after six years away, in 2018 we welcomed Rob to Asda back on a fixed term contract to support us through the proposed merger with Sainsbury’s.

”Although this deal did not complete, we were delighted when Rob agreed to extend his contract and he has played a really pivotal role in helping us navigate our journey to new ownership.

”I want to personally recognise the contribution he has made and the support that he has given me throughout this incredible period of time.”

The news comes as industry headhunters said they have received inquiries from several members of the Asda top team seeking new roles, with one saying that the number of requests was much higher than normal, as originally reported by The Times.

Burnley also announced his decision to leave the business earlier this month, amid rumours that new owners the Issa brothers had been looking for his replacement since Christmas, and many of the leadership team may now follow suit.

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It is thought that one of the reasons some Asda executives have decided to leave was because they would no longer be able to take part in former parent company Walmart’s sharesave scheme. Walmart completed the £6.8bn sale of Asda to the Issas and TDR Capital in February.

With stock held over the past three years vesting this month, a mass exodus may follow the final payout from the scheme.

Other reasons for leaving include the failed tie-up between Sainsbury’s and Asda, the coronavirus pandemic and the sale of the business.

Asda has reportedly restructured its staff bonus programme to mitigate the loss of Walmart’s share scheme. Employees can receive between 100% to 200% of their salary in cash bonuses, dependent on seniority.