Sainsbury’s
has agreed a payout of up to £3.1m with former chairman and chief executive
Peter Davis.
The
supermarket chain said that "strenuous efforts" had been made to
reach a settlement with Davis, who left the business in June.
The
company had tried to stop any payments in the face of widespread anger among
investors in the face of falling market share and profits at the business.
However,
the decision to settle with Davis
has prompted the resignation of two non-executive directors, Lord Levene and Keith
Butler-Wheelhouse.
Following
mediation by the Centre for Effective Dispute Resolution, Davis
will receive a cash payment of £2,616,480 in settlement of his claim for
shares, and a salary of £500,000 until 31 July.
Sainsbury’s
said the payout was around £1m less than Davis’
contractual entitlement, and said it "believes it is in the best interests
of the company’s shareholders to reach settlement and bring this matter to a
conclusion".
When
the departure of Davis
was first announced, the Transport & General Workers Union
(T&G) branded expected £2m payout an “ill-deserved and outrageous payment”.
The
T&G, which represents more than 12,000 Sainsbury’s staff, welcomed Davis’
departure, but said he had failed the company and its staff.
Brian
Revell, T&G national
organiser, said: “Sir Peter has closed the door on Sainsbury’s, but he has
taken with him a bonus which he denied to staff. He has left behind a
demoralised and undervalued workforce.”
