Sainsbury's outgoing CEO Justin King became the only head of a listed UK supermarket group to get a bonus this year as the industry reels from the shakeout caused by discounters Aldi and Lidl.
King, who steps down next month after a decade at the helm of the UK’s third largest grocer, received a bonus of 781,000 pounds ($1.3 million) as part of his overall £3.9 million pay for last year, Sainsbury’s annual report showed today.
Philip Clarke at Tesco, Dalton Philips at Morrison Supermarkets and Marks & Spencer Group's Marc Bolland all missed out on bonuses as sales and profits declined.
King’s bonus was down 22% on last year, while his overall pay declined by 9.6% to £3.95 million. Sainsbury’s reported its first quarterly drop in sales in more than nine years in March as more shoppers desert the big chains.
King’s successor Mike Coupe, who also took a cut in overall pay last year, is under pressure to restore sales growth as the company dodges price cuts by competitors such as Tesco and Morrison with a focus on quality, freshness and food provenance. The grocer’s market share has dropped to 16.5% from 16.7% a year ago, Kantar Worldpanel said this week.
Coupe, who will become CEO following the company’s annual general meeting on July 9, will receive a base salary of 900,000 pounds per annum, and be entitled to an annual bonus worth as much as 110% of that, the annual report shows.
King waived his entitlement to a cash severance payment of as much as £1.7 million, preferring to instead remain eligible for 2012 and 2013 long-term incentive plan awards.
Bloomberg
