Wm Morrison Supermarkets’ (LON:MRW) chief executive David Potts will take home £5.8 million for 2017, nearly double his 2016 pay package, the blue-chip grocer has disclosed. The news comes even as the blue-chip grocer suffered an investor revolt last year, with almost half of shareholders voting at the group’s annual general meeting (AGM) rejecting the supermarket’s remuneration report.
Morrisons’ share price has been little changed in today’s session, having inched 0.08 percent higher to 251.60p as of 10:33 BST. The shares are marginally underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.15 percent higher at 7,722.67 points.
David Potts’ pay package rises
Morrisons disclosed in its annual report published yesterday that its chief executive David Potts’ pay package for the 2017/18 financial year was £5.81 million, up from £2.79 million in the prior-year period. While his salary remained unchanged at £850,000, his pay package was boosted by a £3.04-million long-term incentive plan (LTIP) bonus.
The rise in Potts’ pay comes after 48.11 percent of voters rejected the group’s remuneration report last year, with investors rebelling against plans to increase Potts’ LTIP.
Tony van Kralingen, chair of the grocer’s remuneration committee, commented in yesterday’s remuneration report that he was “keenly aware of the voting outcome at the June 2017 AGM,” noting that he had engaged with shareholders and had “listened to their concerns about remuneration”.
Morrisons is scheduled to hold its AGM on June 14.
Analysts on blue-chip grocer
Deutsche Bank, which sees Morrisons as a ‘hold,’ lowered its price target on the stock from 245p to 240p on Friday. According to MarketBeat, the blue-chip supermarket currently has a consensus ‘hold’ rating and an average price target of 229.6p. Barclays meanwhile said yesterday that the grocer could stand to benefit from the recently announced tie-up between rivals Sainsbury’s (LON:SBRY) and Asda.