J Sainsbury’s (LON:SBRY) chief executive Mike Coupe saw his pay package rise by about £1 million to £3.4 million, the blue-chip grocer has disclosed. The news comes as the company faces criticism over a pay deal which could leave 9,000 staff worse off.
Sainsbury’s share price has advanced in London this morning, having jumped 1.97 percent to 310.80p as of 09:38 BST. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.65 percent higher at 7,731.23 points. The group’s shares have added more than 17 percent to their value over the past year, as compared with about a 2.5-percent gain in the Footsie.
CEO pay package rises
Sainsbury’s disclosed in its annual report published on Friday that the pay package of its chief executive Mike Coupe had climbed to £3.4 million for the 2017/18 financial year, from £2.4 million a year ago. The surge was mostly on account of an annual bonus of £427,000, as well as a spike in his long-term incentive plan from £413,000 to £1 million.
The report comes as the FTSE 100 grocer faces criticism over a pay deal which could leave 9,000 staff worse off. The Guardian quoted Labour MP Siobhain McDonagh, who has been campaigning to persuade Sainsbury’s to change its staff pay plans, as commenting: “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.”
Analysts on Sainsbury’s
BNP Paribas reaffirmed the blue-chip grocer as an ‘underperform’ last week, valuing the shares at 250p. According to MarketBeat, Sainsbury’s currently has a consensus ‘hold’ rating and an average price target of 284.25p.