More controversy for Morrisons over FD

David Jones, the deputy chairman of supermarket company Wm Morrisons
Supermarket plc, has written to shareholders in an attempt to ease governance
concerns over new rules for executive contracts.

Morrisons wants to extend executive contracts from one to two years, which is
in breach on the combined code, the FT reports. The company believes it
is essential for the business’s new FD Richard Pennycook to have the security of
a two-year deal.

Pennycook replaced long-standing FD Martin Ackroyd, who was forced to resign
last year after a string of profit warnings. Pennycook, formerly the FD of RAC,
was appointed in October on the same day that Morrisons chief executive Bob
Stott announced that he would leave this summer.

Stott’s successor has yet to be named and Pennycook wants the security of a
two-year contract in case the new chief executive seeks to replace him.
Pennycook has relocated his family to the Morrisons headquarters in Yorkshire.

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