When the pandemic halved profits, Morrisons was hit by a major shareholder rebellion over his boss’s £ 1.7m bonus.
Morrisons was hit by one of the biggest shareholder rebellions in British corporate history yesterday.
More than 70% of shareholders have refused to hand over CEO Dave Potts, 63, a big bonus after a pandemic halving profits.
Investor rebellion follows a year of unemployment in Morrisons, dividend cuts and unprecedented taxpayer support.
Rebellion: More than 70% of shareholders have rejected the decision to give CEO Dave Potts (pictured) a £ 1.7m bonus after a year of unemployment and a dividend cut in Morrisons.
Potts received up to £ 1.7m in bonuses, despite profits declining from £ 435m in the previous year to £ 165m.
He was also given £ 1.4 million worth of shares. After overcoming the crisis and leading a grocery store, the company claimed to be worthy of him.
The board has upgraded payments by removing the £ 290m cost of the pandemic when calculating compensation. This pushed the bonus up to 200% of salary, giving a total of £ 4.2 million in payment packets.
The grocery store owner said:
“We would like to express our deepest regret to the Commission for not being able to clearly convince the majority of shareholders or the proxy voting body that this was the correct course of action.”
Shareholder advisory group Glass Lewis said the adjustment was “unsupportable,” but the ISS said there were “serious concerns.”
Morrisons was praised for returning a £ 230m business rate bailout. Shareholder voting is advice and means that there is no obligation to reduce wages.
The rebellion was one of the largest listed companies in the UK, surpassing 65% of shareholders who rejected £ 75m of Persimmon boss Jeff Fairburn in 2018, and a backlash against Royal Mail’s Ricoback that year. Equivalent.
Morrisons hit by a major shareholder rebellion over his boss’s £ 1.7m bonus
Source link Morrisons hit by a major shareholder rebellion over his boss’s £ 1.7m bonus