Investors rebel against Morrisons' remuneration report

 
Helen Cahill
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Morrisons' investors have rebelled against the company's remuneration report at its annual general meeting today.

Influential shareholder group Institutional Shareholder Services (ISS) recommended that shareholders in the supermarket vote against its chief executive David Potts' pay.

Read more: Morrisons boss' pay to come under scrutiny this week

ISS questioned Potts' long-term share awards, which increased from 240 per cent of his salary to 300 per cent despite his targets being reduced.

In the vote this afternoon, 48 per cent of Morrisons' investors voted against its remuneration report in a non-binding poll.

However, only seven per cent of shareholders refused to back the supermarket's overall pay policy. The vote on the retailer's pay policy was binding.

Andy Higginson, Morrisons' chairman, said: “We consulted widely with shareholders on the new remuneration policy which received strong support with more than 92 per cent in favour so we were surprised not to get a higher vote in favour of the directors’ remuneration report.

"However, we fundamentally disagree with the ISS analysis of the performance targets. Not only does the board believe the targets to be significant and stretching, but the judgement on what the right measures are goes to the heart of rebuilding the business for the long term - striking the right balance between investment in the business and continued outperformance.”

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