Friday, June 05, 2020

Supermarket Super Profits

David Potts, the CEO of Morrisons, and Trevor Strain, its chief operating officer, are set to take a 24% pension contribution, in direct opposition to a corporate governance code that says their rates should be aligned with those of their workers. Morrisons staff – the ones putting their lives on the frontline - are only getting 5%.

Tesco is expected to clock up £300m extra profit thanks to Covid-19. Its CEO is taking an extra 25% cash payment on his £1.25m salary, holding out for a performance-related bonus, while Tesco frontline staff get just a 7% contribution to their workplace scheme. Tesco recently paid out £635m in dividends to shareholders while receiving a similar sized tax-break from the government’s emergency coronavirus support package. 

The phenomenal share option taken by Ocado’s top executives amounts to £88m – while the pay ratio from boardroom to average staff wage is a staggering 2,605%, says the High Pay Centre. It’s worth noting, wryly, that Ocado’s top three executives take 1% of the company’s value, but are met with rather less public outcry than when John McDonnell proposed companies should put 1% of their value into a fund for their entire workforce.

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