More investor revolts on way but Morrisons set to escape the anger
Cookson will have to answer questions about a £7m award to chief executive Nick Salmon and 888 has been given a red top warning by the Association of British Insurers.
Morrisons revealed that its chief executive Dalton Philips received a six per cent pay increase last year taking his salary from £800,000 to £850,000, but the company said there will be no pay rises for executive directors in 2012/13.
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Hide AdBoth Mr Philips and finance director Richard Pennycook were awarded an annual bonus of 180 per cent of salary.
The Bradford-based supermarket chain said this reflected strong underlying pre-tax profits growth of 7.6 per cent and the achievement of personal objectives.
Half of the 180 per cent bonus will be awarded in shares to provide an incentive to boost the group’s share price.
The Association of British Insurers, which monitors and criticises excessive payouts, said it has no plans to issue an ‘amber’ or ‘red’ top alert ahead of Morrisons’ annual general meeting on June 14.
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Hide AdMr Philips’ total payment including the cash part of the bonus rose 14 per cent to £1.78m in the year to January 29.
Mr Pennycook’s rose 20 per cent to £1.18m.
Last week the ‘shareholder spring’ that has erupted over the past month claimed the scalp of Aviva’s chief executive Andrew Moss.
Mr Moss resigned with immediate effect after more than half the insurance firm’s shareholders refused to back its pay report.
Bookmaker William Hill also faced a revolt at its annual meeting over the pay package awarded to chief executive Ralph Topping, which included a £1.2m retention bonus and an 8.3 per cent salary rise.
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Hide AdAlmost half the group’s shareholders voted against the pay package.
Discontent among investors in Britain over pay has spread outside financial services.
Premier Foods and satellite company Inmarsat suffered rebellions at their annual meetings two weeks ago.
Company directors are expected to remain under pressure from shareholders over executive pay even after the market downturn ends with investors and directors saying the days of shareholders routinely rubber-stamping company resolutions at annual meetings are gone.
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Hide AdA number of major British companies, including Barclays, Xstrata and AstraZeneca have all suffered significant protest votes against management and pay.
Mr Moss left after two other chief executives, David Brennan at AstraZeneca and Trinity Mirror’s Sly Bailey, stepped down amid increasing shareholder dis-content.