Morrisons boss David Potts' pay to come under scrutiny at the supermarket chain's annual general meeting this week

 
Shruti Tripathi Chopra
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Morrisons annual general meeting will be held on 15 June (Source: Getty)

Supermarket giant Morrisons could face an investor backlash at its annual general meeting (AGM) on Thursday over its chief executive David Potts’ pay.

Institutional Shareholder Services (ISS), which advises more than 1,700 of the world’s biggest investors, is recommending a vote against the retailer’s pay report.

In 2016, Potts received a total pay package of £2.8m compared with £2.3m the year before.

ISS has raised questions over Potts’ long-term share awards increasing from 240 per cent of his salary to 300 per cent despite targets being reduced. However, ISS has advised shareholders to vote in support of the supermarket chain’s three-year remuneration policy.

Sky News reported that even if there is a big vote against the pay report, it would be advisory rather than binding.

A former Tesco executive, Potts joined Morrisons in 2015 and was tasked with reviving the group following its sales slumping as discounters Aldi and Lidl wooed more shoppers.

Morrisons recorded its sixth consecutive quarter of sales increase in the 13 weeks to 30 April, it revealed last month.

Read more: This supermarket has been rated the worst shop on the UK high street

The retailer grew like-for-like sales, excluding fuel, by 3.4 per cent. That topped the 1.8 per cent growth expected by analysts on average and growth of 2.5 per cent achieved in the previous quarter. This increase came despite a 6.9 per cent decline in the number of items per basket.

However, the number of transactions increased to nearly five per cent.

Morrisons could not be reached for comment.

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