Morrisons chief executive, Dalton Philips, has waived his annual bonus after overseeing a collapse in sales and two massive profits warnings in the space of three months.
Despite the retailer's dismal financial performance, Philips was due to collect a £374,000 bonus for meeting strategic targets including the launch of online shopping, 22% of his potential short-term bonus for the year. Half of that would have been in cash and the other half in share awards deferred for three years. But Philips, who is paid £850,000 in basic salary, has chosen not to collect either payout after profits slumped 13% in the year to February and sales dipped 2%.The company has had a disastrous year; yet Mr Phillips is still entitled to a bonus? He may be doing the right thing, but the structure of his incentives is surely inappropriate. As appears to be the case with far too many senior company officials, and not just in Morrisons.