Sainsbury's chief 'in the money' with £3.4m pay package

https://www.theguardian.com/business/2018/jun/08/sainsburys-chief-mike-coupe-money-pay-package

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The chief executive of Sainsbury’s is “in the money”, having earned nearly £3.4m in the past year – up 45% on the previous year – as a result of a big cash bonus and incentive scheme payouts.

Mike Coupe was widely mocked in April when he was filmed singing one of the best known songs from the musical 42nd Street. An accomplished musician, he was caught off-guard singing while waiting to be interviewed on ITV about a planned merger with Asda.

The grocer’s latest annual report shows Coupe was correct – his annual pay rocketed by more than £1m last year, including a £427,000 annual bonus. His fellow directors Kevin O’Byrne, the finance chief, and John Rogers, who heads the Argos business, also earned annual bonuses worth more than £400,000, taking their pay to £1.45m and £2.21m respectively.

Details of the boardroom payouts at Sainsbury’s have emerged as the retailer faces criticism about changes to pay and conditions for its shop workers that will leave about 9,000 staff worse off.

Coupe received the cash bonus despite reporting a near 19% fall in profits, because he hit targets linked to the supermarket’s takeover of Argos and the Nectar loyalty card scheme and also met a minimum profit target.

He received a £1m long-term share bonus relating to performance at the business over the three previous years, and a £758,000 deferred share bonus, up from £716,000 a year before.

The Sainsbury’s boss, who hopes the competition watchdog will approve the planned takeover of Asda within the next 18 months, was paid £943,428 in basic salary. He has recently had a 2% pay rise to £962,297.

The Labour MP Siobhain McDonagh, who has been campaigning to persuade Sainsbury’s to change its staff pay plans, said: “What self-respecting chief executive would accept £1m pay rise while simultaneously slashing the salaries of 9,000 of his most loyal and longstanding staff? While Mike Coupe sings how he is ‘in the money’, his most dedicated staff are being made to work for less.”

The union Unite is considering legal action after the supermarket said it was pressing ahead with a plan to cut paid breaks, annual bonuses and premium pay for Sundays.

The retailer says is investing £110m in a wage increase for 93% of its 130,000 shop workers – from £8 to £9.20 an hour, or £9.80 in London – to give an average pay rise of 9.3%.

Sainsbury’s has pledged to make up the difference in earnings for those who have lost out for the first 18 months and then review its policy in March 2020.

Coupe’s pay package remains substantially less than rival supermarket bosses, with Dave Lewis at Tesco facing a potential backlash from investors at next week’s annual shareholder meeting after earning nearly £4.9m last year, up 17.5%.

David Potts at Morrisons earned £5.8m last year when he doubled his pay after earning a £3m long-term bonus.