On the go: Morrisons’ shareholders have been advised to vote against executive pension payouts, as they are not aligned with the majority of the retailer’s workforce.
According to The Times, Morrisons is proposing a 24 per cent pension contribution rate for chief executive David Potts and chief operating officer Trevor Strain, while the remaining workers receive a 5 per cent employer contribution.
In November 2018, the Investment Association published its principles of remuneration, which set out investor expectations on executive pay and highlighted high pension contributions as a key concern.
The trade body stated that pension-related payments should not be used as a mechanism for increasing total remuneration, and that pension contribution rates for executives should be aligned with those of the workforce.
On the basis that no timeline has been given for narrowing the gap, advisory group Institutional Shareholder Services has recommended that shareholders vote against the company’s remuneration policy at its annual meeting on June 11.
A source close to the company told The Times that it was not appropriate to slash Mr Potts’s pay so close to retirement, and that Mr Strain’s pension payouts would be brought into line with the rest of the workforce over time.
