WH Smith tries to recover bonuses from ex-bosses as watchdog investigates accounting error

The Guardian - World NewsCenter-LeftEN 2 min read 100% complete by Sarah ButlerDecember 19, 2025 at 10:52 AM

AI Summary

medium article 2 min

WH Smith is attempting to recover up to £7 million in bonuses from former CEO Carl Cowling and former finance director Robert Moorhead following a significant accounting error in its North American business. The error, related to supplier income and lost stock, wiped nearly £600 million off the company's stock market value in August. The UK's Financial Conduct Authority (FCA) has launched a formal investigation into WH Smith's compliance with listing, disclosure, and transparency rules. The company's pre-tax profits for the year ending August 2025 fell to £16 million due to one-off costs. WH Smith is implementing a remediation plan, simplifying its North American division, and exiting unprofitable fashion stores to restore trust and improve returns.

Key Entities & Roles

Key Player Opposition Context

Deloitte 40% Andrew Harrison ×250% Robert Moorhead ×360% North America ×360% Carl Cowling ×370% Financial Conduct Authority ×280% UK ×280% WH Smith ×790%

Keywords

accounting error 100% bonus clawback 90% financial watchdog 70% formal investigation 70% executive bonuses 60% governance and controls 50% financial misconduct 50% profit restatement 40%

Sentiment Analysis

Negative

Score: -0.40

Source Transparency

Source

The Guardian - World News

Political Lean

Center-Left (-0.40)

Far LeftCenterFar Right

Classification Confidence

90%

This article was automatically classified using rule-based analysis. The political bias score ranges from -1 (far left) to +1 (far right).

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accounting error bonus clawback financial watchdog formal investigation executive bonuses governance and controls financial misconduct profit restatement

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