Bob Stott, chief executive of Morrisons, is set to receive a £1.42m pay-out when he leaves the supermarket chain later this year.

The company's annual report, published yesterday, said that once a replacement had been found for Stott, he would stay on for a handover period and leave with a payment worth “two times his salary, profit share and certain benefits”.

He will also remain at Morrisons for a further 12 months in a consultancy role.

Morrisons is expected to announce a successor to Stott before its annual meeting next month.