Qatari takeover could net Sainsbury's boss £40m

Sainsbury’s chief executive Justin King could be offered an incentive package worth up to£40 million over five years if Delta Two succeeds in taking the supermarket private.

It is thought King could be offered a relatively modest basic salary, but huge incentive payments if the performance of the UK’s third-largest supermarket continues to improve, according to The Mail on Sunday. Negotiations about his compensation package cannot start until a potential take over is completed.

A source close to the negotiations told the newspaper that King could "name his price" after successfully turning around Sainsbury’s over the past three and a half years. Delta Two, an investment fund owned by the Qatari royal family, is understood to be keen to retain King as chief executive.

Last week, Sainsbury’s board unanimously agreed to open its books to Delta Two for due diligence after receiving a proposed 600p-a-share offer in July.