In 2014, Morrisons annual report revealed that former CEO Dalton Philips 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 the Sunday Times, the Investment Management Association (IMA) issued an “amber alert“, while corporate governance advisory consultancy Pirc expressed “concern” over the deal. US company Institutional Shareholder Services (ISS), is among the companies to have advised investors to oppose the remuneration report. Read more about supermarkets and grocery stores:
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, Friday’s closing prices suggested that it is likely to be transferred to the FTSE 250, the London Stock Exchange said. Morrisons share price has fallen more 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 operator Inmarsat is 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. By Shané Schutte
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