Sainsbury’s CEO faces criticism for pocketing £3.9m bonus

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Sainsbury's CEO
// Sainsbury’s Mike Coupe criticised by shareholders & MPs for his £3.9m pay packet
// The pay packet represents a 7% increase from the previous year despite failed Asda merger

Sainsbury’s chief executive Mike Coupe has been condemned by shareholders and MPs for pocketing a £3.9 million pay packet.

Despite the grocer’s failed merger with Asda in late April, the £3.9 million pay packet represents an increase of seven per cent from the previous year.

Siobhain McDonagh MP said Coupe should review his bonus and consider giving it up as retail staff were treated unjustly in comparison with bosses.

Last year, Sainsbury’s was accused of cutting its 9000 staff member’s pay after it eradicated paid breaks for long-serving employees.

However, last month Sainsbury’s chairman Martin Scicluna said the failed merger was “not a cock-up” and that the CMA made a decision despite Sainsbury’s doing a “very good job”.

Shareholders will vote on pay at Sainsbury’s AGM on July 4.

“Executive pay is set by the remuneration committee and bonuses are subject to stretching targets,” Sainsbury’s said.

“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.”

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7 COMMENTS

  1. Amazing – while he pockets £3.9 million bonus – the shelves are empty as there are no staff to fill then up. Before the remuneration committee sets the new targets, I suggest they take a look around stores (Lyons Farm – Worthing) where on Saturday there were more as many empty areas in the greengrocer as there were stocked ones. The store manager having to lend a helping hand to re-stock. This is not a one-off but a frequent occurrence in areas such as greengrocery, bakery, meat and dairy.

  2. Dam right he should give it back.
    All stores are struggling. Which doesn’t make it a pleasant experience for the customers.
    The decision might have seemed right at the time stores are definitely suffering.

  3. Dam right he should not get this bonus but it is hypocritical that a MP should say it when every year they vote on and take a undeserved pay rise stealing from the public purse.

  4. I worked for the Company for 10 years in the 1980’s and 90’s where the standards of service and store level of fill/presentation were immeasurably superior than they are today. It pains me to visit stones these days. David Sainsbury started the rot when he got rid of several tiers of in-store management in the 90’s. What he failed to recognise was that these in store ‘managers’ were effectively working under what we would now call modern slavery conditions – often working very large numbers of additional unpaid hours and thus were a massive contribution to the company’s profits. When he got rid of them (I cant remember the exact name of the ‘operation’ this exercise was given) he also got rid of all of those thousands upon thousands of hours of free labour.

  5. I popped in to my local Sainsburys in Magpie crescent Stevenage yesterday, kids were messing about with a football & running about. the staff did nothing? I decided to do some lottery the slips had been scribbled on? a security guard sits between the two doors, must have been asleep?

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