Sainsbury’s
has attempted to stave off shareholder revolt over the remuneration package
offered to former chairman Sir Peter Davis.
The
supermarket chain, which issued a profit warning last month, has been facing
the possibility of shareholders voting against its remuneration report at next
week’s annual meeting.
Davis
was due to get a performance-related package worth £2.3m on top of his £850,000
basic package for last year.
However,
Sainsbury’s issued a statement today that said: “the remuneration committee can
no longer support its original recommendation on the proposed share award”.
The
u-turn came after a special board meeting last week, when new chief executive
Justin King reported his early analysis of the condition of the company.
Sainsbury’s
said it will continue to recommend the remuneration report to investors at the
meeting on Monday, but said it will not implement the recommendations in
relation to Davis.
Legal
discussions between the company and its former chairman continue.
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