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