CEO Mike Coupe received an almost 40 percent boost from the £427,000 bonus he bagged the previous year, taking his total pay package to £3.88million. This is up from the £3.63million the year before, according to the company’s annual report. His base salary, pension benefits and long-term incentive plan awards also rose, but his deferred share award (DSA) was down 23 percent at £582,000. Sainsbury’s said the bumper bonus for Mr Coupe came after minimum profit and personal targets were met.
This includes the integration of Argos and “continuing development of business strategy”.
It comes after a turbulent year for the retailer, in which its proposed multi-billion mega-merger with Asda was blocked by the Competition and Markets Authority (CMA) in April.
The competition watchdog made their decision on the grounds that it would result in higher prices for shoppers.
In its final report, the CMA found that the deal would lead to increased prices in stores, online and at many petrol stations across the UK.
The watchdog added that the deal would result in a “substantial lessening of competition” at both a national and local level for people shopping in supermarkets.
Following the decision, Mr Coupe said at the time: “The specific reason for wanting to merge was to lower prices for customers.
“The CMA’s conclusion that we would increase prices post-merger ignores the dynamic and highly competitive nature of the UK grocery market.
“The CMA is today effectively taking £1 billion out of customers’ pockets.”
In its annual results last month, Sainsbury’s revealed a £46million bill for preparation costs associated with the deal.
Writing in a question and answer section following the annual figures, Mr Coupe said he remained “confident in our strategy as a standalone business”.
In a note to shareholders in the report, chairman Martin Scicluna said: “In the current retail market, it is obvious that standing still is not an option.
“We must continue to adapt to market forces and meet the needs of our customers.
“We were, therefore, very disappointed by the Competition and Markets Authority’s decision on our proposed merger with Asda.
“We strongly believe that the deal would have benefited our customers and our business.”
Finance chief Kevin O’Byrne and Argos boss John Rogers have also been lined up for pay increases this year, receiving £2.2million and £2.5million respectively.