Wm Morrison Supermarkets (LON:MRW) been included alongside other FTSE 100 companies in a list ordered by the prime minister of firms rewarding bosses with “fat cat pay” and representing the “unacceptable face of capitalism,” the Guardian has reported. Britain’s fourth-biggest supermarket made the ‘name and shame’ list after suffering a shareholder rebellion over executive pay earlier this year.
Morrisons’ share price has climbed into positive territory in London in today’s session, having added 0.23 percent to 213.90p as of 14:25 GMT, marginally outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.06 percent higher at 7,541.34 points. The grocer’s shares have lost some six percent of their value over the past year, as compared with a more than seven-percent rise in the Footsie.
Morrisons makes ‘name and shame’ list
The Guardian reported today that Morrisons is one of the companies included on the “name and shame” register of companies which Theresa May said risk damaging “the social fabric of our country” by paying bosses too much money. The prime minister ordered the creation of the world’s first public register of companies that ignored shareholder concerns and awarded “pay rises to bosses that far outstrip the company’s performance” in August. Blue-chips on the register also include Burberry (LON:BRBY), HSBC (LON:HSBA), BT Group (LON:BT.A) and Sky (LON:SKY).
Morrisons in particular made the list after earlier this year, 48.11 percent of voters rebelled against the grocer’s plans to increase chief executive David Pott’s long-term incentive plan award to up to 300 percent of base salary from 240 percent.
Analysts on Morrisons
The 16 analysts offering 12-month price targets for Morrisons for the Financial Times have a median target of 237.50p on the shares, with a high estimate of 275.00p and a low estimate of 170.00p. As of December 16, the consensus forecast amongst 20 polled investment analysts covering the blue-chip supermarket advises investors to hold their position in the company.
Morrisons is scheduled to update investors on its Christmas performance on January 9.