In 2014, Morrisons annual report revealed thatformer CEO DaltonPhilips received a remuneration of 2.1m, including a basic salary of 850,000 and an annual bonus of 1.01m.
Fund managers are still angry that Philips received a 1m bonus, equating to 60 per cent of the maximum possible payout, despite the poor performance of the business.
Investors are expected to protest at the company’s annual meeting due to the 3m payoff awarded to Philips, said CEO David Potts.
According to theSunday Times, the Investment Management Association (IMA) issued an “amber alert“, while corporate governance advisory consultancy Pirc expressed “concern” over the deal. US companyInstitutional Shareholder Services (ISS), is among the companies to have advised investors to oppose the remuneration report.
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Oliver Parry of the Institute of Directors said: Considering the loss posted by Morrisons and what appears to be a lack of stringent performance targets, all shareholders will need to scrutinise [Philips ] pay deal closely.
Sources said that they expected some 20 per cent of votes to be cast against the pay report.
The company also faces being booted out of the FTSE 100. Although a decision has yet to be made, Fridays closing prices suggested that it is likely to be transferred to the FTSE 250, the London Stock Exchange said.
Morrisons share price has fallenmore than 15.5 per cent in a year, with its shares down 0.7p at 170.3p. It revealed a 4.9 per cent drop in turnover to 16.8bn at the beginning of 2015, resulting in a pre-tax loss of 792m. Satellite network operatorInmarsatis set to take Morrisons place.
If Morrisons were demoted, it would be the only one of the big four supermarkets listed in the UK not to be in the FTSE 100.