Sainsbury’s boss Mike Coupe has been criticised by shareholders and MPs for his £3.9m pay-packet.
The sum represents an uplift of 7% from the previous year despite the failed merger with Asda.
“The [remuneration] committee have failed to outline the impact, if any, of the failed deal on the bonus outcomes of the executives, particularly in light of share price performance as a direct result,” said shareholder advisory firm Glass Lewis, according to a report seen by The Daily Mail.
Siobhain McDonagh MP said Coupe should consider giving up some or all of his bonus, saying that retail staff were treated poorly in comparison with their bosses. The grocer was accused of cutting pay for 9,000 staff last year after it reduced overtime and scrapped paid breaks for long-serving employees but lifted hourly pay.
Sainsbury’s chair Martin Scicluna maintained last month that the merger was “not a cock-up” and said that the CMA made its decision despite the grocer doing a “very good job” in presenting its case.
Shareholders will vote on pay at Sainsbury’s AGM on July 4.
Sainsbury’s said: “Executive pay is set by the remuneration committee and bonuses are subject to stretching targets. The business has hit a number of targets this year, including increasing profit, reducing net debt and increasing the dividend, which is why we have paid a bonus to eligible colleagues.”
While underlying profits rose during the year, when one-off costs, mainly relating to the failed merger, were included, profits crashed 42%.