// Sainsbury’s under fire for huge rise in dividends – a lot of which goes to foreign shareholders
// The Big Four grocer is set to unveil a sizeable bonus for CEO Simon Roberts
Sainsbury’s is facing backlash for declaring a huge increase in dividends amid the cost-of-living crisis.
A large portion of the dividends is set to go to foreign shareholders.
It comes as the Big Four supermarket prepares to unveil a sizeable bonus for chief executive Simon Roberts, who says Sainsbury’s is doing “everything it can” to cut prices.
READ MORE: HFSS: Should grocers follow Tesco and Sainsbury’s and ban the BOGOF?
Roberts is set to receive a big payday this year after having waived his previous £1 million bonus due to the pandemic.
Sainsbury’s said at the time it was “another example of his integrity as a leader”. His total pay packet then came to £1.3 million.
Investors are about to share in £300 million of dividends.
The dividend is 24% higher than in 2021 and the largest since 2015. Profits doubled last year to £730 million but are expected to drop back this year.
About £75 million of the payout will go to the two biggest shareholders, the Qatar Investment Authority, which has a 15% stake, and billionaire Daniel Kretinsky who has a 10% stake.
Roberts is eligible this year for a bonus worth up to 220% of his £875,000 salary. That would take his total package to nearly £3 million.
Luke Hildyard of the High Pay Centre told The Mail on Sunday: “Businesses have a responsibility to do the right thing by shareholders, customers and workers. Our research shows companies prioritising the interests of wealthy investors and executives over ordinary employees time and time again. It is driving an increasing belief that big business doesn’t act in the interests of the country as a whole.”.
Sainsbury’s is also facing demands from some shareholders, led by campaign group ShareAction, to commit to paying a “real living wage”.
A resolution on the matter will be put to the vote at next month’s annual meeting.
Sainsbury’s has spent £100 million this year increasing salaries, but it wants to retain the flexibility to manage its wage bills rather than lock itself into higher pay levels set by a third party.
“As a listed business we always try to balance the needs of all our stakeholders, including our customers, colleagues, suppliers and shareholders,” Sainsbury’s said.
“The vast majority of Sainsbury’s shareholders are UK pension funds and private investors – including Sainsbury’s colleagues – for whom dividends are vitally important.
“We understand that households are counting every penny right now, and that’s why by the end of the year we will have spent over £500 million to keep prices down on the essential items our customers buy the most.”
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