OUSTED Morrisons boss Dalton Philips will receive around a £3 million pay-off, as a "good leaver", the company has confirmed.

The former chief executive left the Bradford-based retailer as it continued to struggle in the fierce supermarkets price war.

Morrisons said Mr Philips would receive his contractual entitlement, including his £850,000 annual salary, other expenses and a yet to be determined annual bonus.

Mr Philips, who led Morrisons for five turbulent years as the supermarket sector suffered from the rise of discounters such as Aldi and Lidl and changing shopping habits, will also benefit from 237,592 share options granted under the company's Deferred Share Bonus Plan and deferred for three years.

In a statement Morrisons said: "The Remuneration Committee carefully considered the circumstances of Mr Philips' departure and took into account his contribution to the business through a period of significant industry change, as well as the importance of ensuring a smooth transition.

"Against that background the committee agreed that he should be treated as a good leaver for the purposes of the company’s incentive arrangements."

Morrisons will make monthly payments of £98,919 in lieu of the remainder of his 12 month notice period, comprising base salary, pension allowance, car allowance, life assurance and private medical cover. A payment of £19,615 to cover unused holidays will also be made.

Mr Philips will be eligible for an annual bonus for 2014/15 subject to performance conditions. The cash bonus will be agreed by the Remuneration Committee this month and disclosed in the 2014/15 directors' remuneration report.

In addition, Mr Philips will be able to cash in around 1,640,000 shares granted to him under Morrisons long term incentive plan from March 2012.

He will also keep the laptop, iPad and iPhone provided by Morrisons valued at £1,000.