Philips has Morrisons bonus scrapped

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Morrisons chief executive Dalton Philips paid the price for the grocer's recent struggles as his annual pay package plunged by almost £700,000.

The UK's fourth biggest supermarket recently reported its first fall in annual profits for six years as the firm was hit by its lack of exposure to fast-growing online and convenience store markets as well as competition from discounters Aldi and Lidl.

Profits slipped 4 per cent to £901m in the year to February, costing Mr Philips his annual bonus. His overall pay fell from £1.79m to £1.09m.

The board has also recommended a pay freeze for directors this year. Overall pay for the Morrisons board fell from £3.64m to £2.44m.

Remuneration chair Johanna Waterous said: "I strongly believe that these remuneration outcomes are appropriate given the performance of the business, and it demonstrates to shareholders that incentives for executives will only pay out when stretching performance targets have been achieved."