£1m bonus for Dalton Philips shows the flaws in Morrisons’ incentive scheme

Philips lost his job because Morrisons’ like-for-like sales figures were so dismal

As an illustration of how the notion of a “bonus” – in the sense of a reward for exceptional achievement – has been debased by modern boardroom pay practices, look no further than Morrisons, whose shareholders gather in Bradford on Thursday.

At least a few investors, contemplating a share price that has almost halved over three years, will want an answer to a simple question: if Dalton Philips’ shift as chief executive was so disappointing that he had to be replaced, why was he awarded a £1m bonus for his last year in the job?

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More fund managers should join the fight on boardroom pay

Fund management houses should back Fidelity Worldwide Investment’s push to reconfigure boardroom pay

Dominic Rossi at Fidelity Worldwide Investment is right: a long-term incentive plan is nothing of the sort if executives can get their hands on the financial prizes after only three years. That’s no time at all – about half the average business cycle – and it introduces a lottery-style element.

Rossi has been making the case for five-year holding periods for ages. Indeed, for the last couple of years, Fidelity, with £190bn under management, has been voting against the remuneration reports of companies that do not practise five years. As he says, he seems to be winning the argument. Two years ago, only four FTSE 100 companies complied; last year’s figure was 27; now the tally is 42.

Related: Top City fund manager says it is impossible to rein in boardroom pay

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BT boss Gavin Patterson collects £4.6m pay package

Telecom chief’s package may swell further after winning premier league broadcasting rights and negotiating EE mobile takeover

BT boss Gavin Patterson, who has masterminded the company’s push into mobile and pay-TV, has collected £4.6m for his first full year in the job.

Patterson’s work during the last financial year, which has included winning premier league broadcasting rights and negotiating the £12.5bn takeover of mobile network EE, could reap even bigger rewards.

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Co-op campaigners attack £5m pay for bank boss Niall Booker

Booker, who could receive £4.97m this year, urged to stay true to bank’s ethical roots and give up his bonus

The £5m pay deal for the boss of the Co-operative Bank is under fire from campaigners who are urging the loss-making bank to take a stand against extravagant bonuses.

Save Our Bank, which claims to have 10,000 members, has written an open to letter to the bank calling on Niall Booker, the chief executive, to acknowledge he is running a bank with its roots in the co-operative sector and give up his bonus.

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UK banks told to rewrite employment contracts of staff on top-up payments

Bank of England says contracts must be amended to comply with European ruling, after many banks started paying ‘allowances’

The UK’s banks have been told by the Bank of England that they need to rewrite the employment contracts of hundreds of staff receiving top-up payments alongside their salaries because of the European Union’s bonus cap.

Andrew Bailey, deputy governor of the Bank of England, says the contracts must be amended to comply with a ruling from the European Banking Authority, which says that many of the attempts by major banks in the UK to sidestep the restrictions on bonuses are breaching the spirit of the rules.

Related: Bonus cap consultation puts Bank of England on collision course with Europe

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Lloyds shareholders approve chief’s £11.5m pay packet

Majority of shareholders back António Horta-Osório’s bumper cash-and-shares deal despite calls from advisory body to reject it

An £11.5m pay packet for the chief executive of Lloyds Banking Group was waved through by shareholders in the bailed-out bank at an annual meeting punctuated by outbursts from disgruntled customers and concern over the £12bn cost of the PPI scandal.

Fewer than 3% of investors voted against the cash-and-shares deal for António Horta-Osório, which, when announced in February, prompted the TUC to ask why the government had not done more to “hold back this excess”. Pirc, the shareholder advisory body, had recommended voting against.

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