Business

Mike Coupe 'in the money' with £3.4m payday amid censure for axing staff perks

Sainsbury's chief executive Mike Coupe who is celebrating a £1.1 million pay rise
Sainsbury's chief executive Mike Coupe who is celebrating a £1.1 million pay rise Sainsbury's chief executive Mike Coupe who is celebrating a £1.1 million pay rise

SAINSBURY'S boss Mike Coupe is celebrating a £1.1 million pay rise, even as he faces severe criticism for stripping staff of benefits.

The supermarket chief executive, who is attempting to merge Sainsbury's with rival Asda, has received a £3.4 million pay package for 2017-18, according to the company's annual report.

Mr Coupe's basic salary rose 2 per cent to £943,000, and his total pay includes a £427,000 bonus and £1.8 million in share awards.

Sainsbury's said the bumper payout was awarded for hitting financial targets.

But Mr Coupe has been criticised for taking home such a large amount while also removing employee benefits, such as paid breaks and bonus.

More than 100 MPs have written to Prime Minister Theresa May to complain about Sainsbury's pay plans, and influential Business Select Committee chairwoman Rachel Reeves has contacted the company to probe the move.

She asked Sainsbury's to clarify whether the restrictions on bonuses for staff would be reflected at executive level.

Kevin O'Byrne, who was appointed as Sainsbury's finance chief in January 2017, received £1.4 million, while Argos boss John Rogers took home £2.2 million, up from £1.6 million the year before.

Mr Coupe, Mr Rogers and Mr O'Byrne received a total of £929,000 in bonuses.

A Sainsbury's spokesman said: "Executive pay at Sainsbury's is set by the remuneration committee and bonuses are subject to stretching targets. Mike and other executives were not awarded an annual bonus last year as the business did not hit its targets.

"The business has hit a number of targets this year, including increasing profit, which is why we have paid a bonus to eligible colleagues across the group."