Sainsbury’s chairman Philip Hampton is set to present a new pay deal for chief executive Justin King to shareholders.
In an attempt to avoid the showdown that cost his predecessor his job, Hampton will be visiting the big City institutions to reveal the deal, which is also though to include the new pay deals for all the top executives, as well as the store managers.
The new scheme is thought to link pay closely to performance and provide a major incentive to more junior levels of management.
Meanwhile, rumours in the City suggest King is mulling over the spin-off of Sainsbury’s Bank, a joint venture with HBOS, which is due for renewal in 2007. Last year, Marks & Spencer, King’s former employer, sold off its financial services division to HSBC for £762 million.
