Ex Morrisons chief Dalton Philips pockets £1m bonus
Former Morrisons chief executive Dalton Philips, whose last year in the role saw the supermarket cut its dividend amid large losses, is being given a £1m bonus for 2014/15.
This comes on top of his base salary of £850,000, and other benefits including his pension. In total, Philips will take home almost £2.1m.
According to Morrisons' remuneration report, Philips received 60 per cent of his total bonus while chief financial officer Trevor Strain received 62 per cent of the total available.
The report said: “Taking into account [Philips'] contribution to the business through a period of significant industry change, as well as the importance of ensuring a smooth transition, the committee determined that Dalton was a good leaver for the purposes of his incentive awards.
“He was awarded a bonus in respect of 2014/15 performance and will receive the deferred shares in respect of performance in the 2011/12 financial year. He will also remain eligible for unvested 2013 and 2014 LTIP awards, subject to performance and reduced pro-rata for time. His 2012 LTIP award has lapsed.”
Strain's total remuneration came to more than £1.2m.
For the year to February 1, turnover at Morrisons dropped 4.9 per cent to £16.8bn. It made a pre-tax loss of £792m, a huge increase on the previous year's figure of £176m.
The supermarket has since revealed plans to cut hundreds of roles in its head office as new chief executive David Potts attempts to turn the supermarket's fortunes around.
Potts will receive the same base salary as his predecessor. His first long-term incentive plan (LTIP) will be 300 per cent of his salary “which is intended to provide an immediate performance driver and alignment with shareholders”.
From then on his LTIP will revert to the “normal level” of 240 per cent.
He is also receiving relocation expenses.
Strain's salary is being increased by seven per cent to £525,000 owing to “the considerable progress made in his role as CFO in the two years since his appointment, his substantial contribution to the business in this time of transition, and current positioning against market data”.