Morrisons chairman Andy Higginson has criticised the change of criteria used by the grocer to calculate bonuses for its executives.
For its annual meeting, scheduled for June 10, advisory firms ISS and Glass Lewis have recommended the Big 4 grocer’s shareholders to vote against its pay report, after the board changed the criteria for bonuses.
“We strongly disagree with the position they have taken,” Higginson said.
“We considered this properly in the round and the management team earned their bonus this year.”
“They did the right thing in working to keep the food supply chain open rather than worrying about their bonus.”
A “red top” has been issued by the Investment Association, which is the organisation’s highest level of concern.
According to the grocer, £290 million of costs were excluded when calculating the bonuses for David Potts, chief operating officer Trevor Strain and chief financial officer Michael Gleeson.
The bonuses collectively equal 200 per cent of salary, the maximum.
It has been reported Potts took a wage of £4.2 million last year, after receiving a £1.7 million bonus.
The minimum hourly wage for staff also went up from £9.20 to £10 in 2021.