Justin King paid £8 million by Sainsbury's
During the period from March 2009 to March 2010 Justin King, the chief executive of Sainsbury's, saw a 60% increase in his income compared to the previous year. Salary, pensions, allowances and bonuses came in at £3.35 million with a £4.52 million gain on share options. However, this increase in income came at a time when Sainsbury announced its slowest growth rates for five years although profits increased by 17.5% to £610 million.
This announcement comes on the day that Sir Terry Leahy has announced plans to leave Tesco after 14 years as the company's chief executive and over 30 years with the company. There is no doubt that the sector has changed dramatically over the last 30 years with the likes of Tesco, Sainsbury, Asda and Morrison's all pushing further ahead often at the expense of their smaller rivals. When you consider the £8 million package paid out to Justin King during the company's last financial year this perfectly reflects the massive responsibility of navigating these large corporations through these difficult financial times.
A number of analysts believe that food inflation will be subdued in the latter part of 2010 which may squeeze margins for UK supermarkets and may force companies such as Tesco and Sainsbury to branch out into different areas.
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