Morrisons chief executive Dalton Philips has waived his annual bonus from the embattled grocer, which sank into the red after a poor performance last year.

Philips has turned down the entire bonus of £374,000 on top of his annual salary, two weeks after the retailer reported pre-tax losses of £176m for 2013, according to Sky News.

Philips would have been eligible for half of it in cash immediately, it is understood. The remainder would have been in shares and subject to a three-year deferral period.

Morrisons is struggling in the difficult food market against its competitors, mainly the discounters, and because of its lack of exposure to the convenience and online sectors.

The grocer has embarked on a major restructuring process in 2014 and plans to invest £1bn in slashing prices to fight back.

Morrisons declined to comment.

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