Sainsbury’s is expected to put the final touches to a new incentive scheme for senior management over the next two weeks.
The retailer has been meeting with its major shareholder, Brandes, this week, and hopes to put the new scheme - in which chief executive Justin King could be paid up to £5 million in four years time - to all its shareholders on July 13.
So far the scheme has been given a cautious approval from the City, which described it as agreeable.
To pick up his sizeable pay packet, King would have to raise sales by £2.5 billion, excluding petrol and financial services, over the next four years and double earnings per share.
Also, to receive the full £5m, King must invest his own money in Sainsbury’s shares as part of a share-match scheme.
