Morrisons faces bonus backlash

MoRRISonS has been criticised over ‘soft’ bonus targets and excessive boardroom pay.

Chief executive David Potts could pocket £10m over the next three years after his longterm share award was increased from 240pc of his salary to 300pc.

But Barclays’ analyst James Anstead described the targets for Potts to achieve his long-term bonus as ‘inexplicably low’ and ‘soft’. He will have to raise sales by 2pc a year and increase profits by 10pc annually.

Voting adviser ISS has recommended that shareholders oppose the firm’s payment report at its AGM this week.

But Morrisons chairman Andy Higginson said Potts’ leadership has been key to the grocer’s recently improved performance.

Under Potts, who joined in 2015, shares have outperformed rivals Tesco and Sainsbury’s over the past year, adding £1.5bn to the firm’s value. ‘our incentives will only pay out in full if outstanding long-term performance is delivered,’ said Higginson.