Sainsbury’s chief executive Justin King will collect a bonus of about £6.5 million this week when he unveils a 25 per cent uplift in pre-tax profits.
King, who has been at the helm at Sainsbury’s for more than four years, will be awarded 1.66 million shares under a long-term scheme put in place in 2004. A further 1,000 senior managers will also receive shares under the arrangement.
On Wednesday, Sainsbury’s is expected to post a pre-tax profit of£480 million on sales of£17.7 billion for the year to March 31. The grocer will also unveil an increase in margins, thanks to a£155 million cost-cutting programme.
Under King’s Making Sainsbury’s Great Again programme, Sainsbury’s has improved sales by£2.7 billion over three years, which is£200 million more than King promised.
Separately, Delta Two, the Qatari-backed investment vehicle that made a£10.6 billion bid for Sainsbury’s last year, is free to bid again for the grocer from this week. Delta was prevented from bidding for six months after a proposed bid collapsed last November. However, some City analysts are sceptical if such a bid will materialise this year, given the present parlous state of the debt markets.
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