Morrison CEO Dalton Philips Misses Out on Bonus, Has 40%Gabi Thesing
William Morrison Supermarkets Plc Chief Executive Officer Dalton Philips didn’t get a bonus and was paid almost 40 percent less last year as the company failed to meet targets.
Philips was paid 1.09 million pounds ($1.7 million) in 2012, down from 1.78 million pounds in 2011, the company said in its annual report published today. Philips’s base salary was frozen at 850,000 pounds and none of the executive directors will receive a base pay increase this year, according to the report.
“Tough conditions resulted in the business missing performance targets for both the annual bonus plan and long-term incentive plan,” Johanna Waterous, who heads the remuneration committee, said in the report.
Morrisons has been losing market share to discounters such as Lidl and Aldi as the economic slump crimps household spending. It’s also losing customers because it has fewer convenience stores and no Internet grocery service, two of the fastest growing areas in the U.K. supermarket sector.
Underlying pretax profit at the company fell 3.6 percent to 901 million pounds in the year ended Feb. 3, while sales at stores open at least a year, excluding gasoline and value-added-tax, fell 2.1 percent.
Philips aims to turn the company around with an emphasis on fresh produce. After he became CEO in March 2010, he vowed to lure recession-racked customers away from tonier chains like Waitrose, part of John Lewis Partnership Plc, and J Sainsbury Plc with lower prices, more attractive stores, and an expanded presence in the south of the U.K.
Richard Pennycook, who stepped down as finance director in February, had to take a similar cut when his pay went down to 667,000 pounds from 1.18 pounds. He was also not awarded a bonus.