The grocer said the proposals outlined in yesterday's annual report have been designed to 'build on a sales-led turnaround'.
The Long-Term Incentive Plan will affect the company's top 1,000 managers, ranging from the chief executive to store managers. Participants will be given a core award of shares calculated as a percentage of their salaries and scaled according to grade.
It is proposed that King will be granted shares to the value of 45 per cent of his salary, and chief financial officer Darren Shapland and the operating directors 35 per cent. The grocer said it wanted to 'provide a common focus for the top 1,000 managers on critical business measures'.
As part of Sainsbury's attempts at alignment of its interests with those of its shareholders, the top 40 managers will also be subject to a Deferred Annual Bonus Plan. Under the initiative, a certain percentage of annual bonuses will be deferred into company shares for a period of three years.
In March this year, King's salary rose from£700,000 to£725,000.
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