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Latest NewsPay & benefitsIncentive pay

Sainsbury’s to tighten link between pay and performance

by dan thomas 24 Jan 2005
by dan thomas 24 Jan 2005

Supermarket chain Sainsbury’s is planning to link pay more closely to performance and provide more incentives to junior levels of management.

Philip Hampton, chairman of Sainsbury’s, is preparing to present new pay deals to shareholders in an attempt to avoid a re-run of the showdown that cost his predecessor Peter Davis his job, reports the Guardian.

Hampton’s tour of the big City institutions could begin as soon as this week and is thought to include new pay deals for all the top executives as well as store managers, the newspaper says.

The remuneration of Justin King, new chief executive, is believed to be only one component of the schemes which are thought to have been devised by Carol Arrowsmith, head of Deloitte & Touche’s executive remuneration advisory team.

Arrowsmith sorted out the pay row at GlaxoSmithKline. She was brought in by Hampton after he was appointed as chairman to replace Davis. He was ousted over a £2.3m bonus which shareholders did not believe he was entitled to.

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