Top level bosses at Morrisons have been rewarded with large pay rises after injecting an increased pace in the supermarket chain’s turnaround.
According to the big four grocer’s latest accounts, Chief Executive David Potts a 2.5% increase to his £850,000 basic salary in addition to a £1m bonus, totalling in a £2.25m pay package. Half of Potts’ bonus was in shares that had been deferred for three years.
Morrisons Finance Chief Trevor Strain also enjoyed a substantial second phased pay rise of 9.5% in February 2016 which took his salary to £575,000 with a £763,000 bonus. Remuneration Committee Chairman Irwin Lee noted that Strain’s new pay package took into account his “substantial contribution to the business during a time of significant transition and taking on extra responsibilities”.
Lee added that the Committee would execute a thorough review of its remuneration policy and consult major shareholders before any further changes are made.
Chairman Andrew Higginson noted in his annual report that Morrisons executive team has set about instilling a new pace into the company’s recovery.
“By listening hard to customers and responding quickly wherever possible, the team are rebuilding Morrisons around its key strengths – good quality fresh food, great value for money, good customer service and authentically British” Higginson said.
“It will take time, and we are not assuming the trading environment will improve, but I am confident that we have made the right changes to simplify and focus the business and to begin to drive sales volumes and deliver improved profits and returns for shareholders.”