Sainsbury’s chief executive Mike Coupe missed out on an annual bonus last year after the supermarket chain failed to meet sales and profit targets.
The retailer’s annual report published yesterday revealed that Coupe’s annual pay package dropped to £1.5m in the year to March, down from £2m the previous year, when he was still commercial director.
Annual bonuses were not awarded to Coupe or any senior directors, however he was granted £458,000 worth of deferred share awards, which will pay out in 2017, according to the report.
Coupe took over from his predecessor Justin King in July last year just as Sainsbury’s began to feel the effects of food price deflation and the intensifying price war launched to stem the flow of shoppers to discounters Aldi and Lidl.
Sainsbury’s posted a £72m loss in the year to 14 March – its first loss in a decade – after booking £753m of charges, mainly related to write-downs on the value of its property.
Its dividend also fell 23.7 per cent on last year, after changing its policy in November to help strengthen its balance sheet and invest £150m in lower prices.
Despite seeing his total pay decrease, Coupe will receive a 1.75 per cent pay rise this year, taking his annual salary for the year to next March to £915,750 – up £15,750 but still below his predecessor King’s pay of £960,000 the previous year.
Chief financial officer John Rogers took home a total payout of £1m compared with £1.7m in 2014. His base salary will increase to £610,500 this year.