Sainsbury’s boss Justin King saw his annual pay package surge 23% to £4.3 million as the supermarket claimed its biggest share of the grocery market for a decade.
Mr King earned an annual bonus of almost £1 million after the UK’s third-biggest supermarket grew underlying profits 6.2% to £756 million in the year to mid-March.
Its longstanding chief executive also received a £940,000 salary, deferred shares worth £975,000, long-term share incentives of more than £1 million and £313,000 in pay and other benefits.
Sainsbury’s annual report also showed commercial director Mike Coupe’s total pay surged 24% to £2.2 million, while finance director John Rogers’ remuneration climbed 26% to £1.7 million.
The grocer’s soaring pay is in stark contrast with ailing rivals Tesco and Morrisons, which axed directors’ bonuses amid slumping profits.
Sainsbury’s said it outperformed competitors last year after achieving a 16.8% market share, its highest for a decade. It was the only one of the big four supermarkets to grow market share during the year.
Last month Sainsbury’s revealed 134,000 of its UK staff will share its largest-ever bonus pot of more than £90 million. Sainsbury’s said it averages out at a week’s pay per employee and is up from a £60 million total pot a year earlier.
Mr King’s salary will rise by 2.1% to £960,000 this year, while his employees will see their pay rise by around 2.2%.
Mr King has turned around the supermarket since joining in March 2004 and was recently forced to deny he is planning to quit.
Mary Harris, chair of Sainsbury’s remuneration committee, said the retailer is “extremely mindful of the economic and political environment regarding executive remuneration and exercise(s) appropriate judgment to ensure that rewards are reflective of underlying performance”.
Shareholders will vote on Sainsbury’s pay report at its annual meeting in London on July 10.
The chain employs about 152,000 staff in more than 1,100 stores.