Dalton Philips refused to take a bonus in his role as then-Morrisons chief exec last year after the retailer’s performance began to turn sour. After being axed in March it seems he’s got no such qualms this year.
The supermarket chain’s annual report, out yesterday, confirmed Philips would be taking a tidy £1.01m bonus for last year, as well as his basic salary of £850,000 and various other benefits payments. He will also receive a further payoff of £1.1m in salary and benefits for this year.
Like most of its peers, Morrisons has been having a seriously tough time of late. It made an £800m loss last year and its market share has been tumbling amid fierce competition from the likes of Aldi and Lidl.
The £1.01m bonus represents 60% of the total Philips could have received. Morrisons did at least acknowledge this was partly about easing his departure – even if it did wrap that in jargon.
‘Taking into account his contribution to the business through a period of significant industry change, as well as the importance of ensuring a smooth transition, the committee determined that Dalton was a good leaver for the purposes of his incentive awards,’ the report said.
Philips could be given even more of a pay off as part of his long-term incentive plan, depending on how well the business performs under his successor David Potts. Potts has been making his mark since taking the helm in March. He’s ditched five senior directors and is in the process of cutting 720 of the 2,300 jobs at the supermarket’s Bradford head office. Presumably those who face the axe won’t be getting quite such a generous payoff as 'good leaver' Philips.