Morrisons shareholders dismiss Covid efforts in massive pay rebellion at AGM

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Morrisons investors have opposed the grocer’s pay report in large numbers at today’s AGM, prompting dismay at the grocer.

Of votes cast on Morrisons’ remuneration report, 70% were against while 30% were in favour.

Opposition was stoked partly by the way chief executive David Potts’ pay package was arrived at, which did not take account of the impact of the pandemic on profits.

It was seen by Morrisons as a stinging outcome following a year in which the big-four food group fully played its part in feeding the nation as Covid took hold, launching initiatives such as a telephone delivery service for the elderly and a bulk delivery service for local councils, care homes and charities.

Morrisons said: “We note the very significant majority vote against the directors’ remuneration report.

“In consultations with shareholders ahead of the AGM, the remuneration committee endeavoured to explain the full context around its decision to apply selective discretion on some aspects of the executive directors’ remuneration, in particular adjusting for direct Covid costs… In the committee’s view, Morrisons performed exceptionally well for the nation during the first year of Covid with the executives widely recognised for their leadership, clarity, decisiveness, compassion and speed of both decision making and execution.

“Almost overnight, the entire business was effectively repositioned to feed the nation and to make sure no one was left behind.”

Morrisons added: “In addition, all colleagues had their bonus significantly enhanced – the average bonus was trebled and paid early – to recognise their extraordinary commitment, innovation, selflessness and hard work in a time of national crisis.

“In the view of the committee, the executives demonstrated those same qualities and, in doing so, helped to develop a more trusted, differentiated and resilient business, which is in the long-term interests of shareholders… In these circumstances, the remuneration committee believed that it was appropriate to apply some discretion to the remuneration of the senior executives.

“It is a matter of sincere regret to the committee that it clearly has not been able to convince a majority of shareholders – or the proxy voting agencies – that this was the right course of action.

“The committee looks forward to re-engaging with shareholders, listening to their views, and once again making the case for why discretion was used in a genuinely exceptional year, which produced a genuinely exceptional performance from the executive leadership.”