King’s Exit and Pricey Pay Package From Sainsbury

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July 9 (Bloomberg) -- Bloomberg’s Caroline Hyde reports on Justin King’s exit from Sainsbury and what that may mean for the company. She speaks on Bloomberg Television’s “On The Move.” (Source: Bloomberg)

Graceful.

Here to tell us why is caroline hyde.

Caroline, why is there so much controversy?

I know he got paid a lot over the last 10 years.

Is that the reason why there is rancor?

I think it is about his last paycheck.

This is a man who is going to be paid more than double of any of the other rival grocers.

Tesco, astro, morrison's. justin king is set to take away 3.9 million pounds.

I must add, that is 22% lower than last year.

This is a man who has waivwded his 1.7 million severance payment.

He is the only head of a grocer to take home a bonus.

Maybe he should.

He saw a record pretax profit.

Maybe this is for a man who should be taking home so much pay.

There is slight concern because the intention and investment research consulting firm, one of the biggest advisory groups to shareholders in the u.k., they are saying this is excessive.

They are advising that shareholders vote down this paycheck.

This is a man who has driven sainsbury's arguably from a decade of decline and has turned this business around, made it far more efficient and even giving back morale to the workforce.

It is arguable as to whether he should be coming under so much duress.

Many shareholders would be one thing -- we can't talk about retailers and not talk about this counters.

What is the strategy?

We have got a new kid on the block.

Returning to the block.

It is nano.

They left back in 2010 after astro took over 193 stores.

They are returning to this sacred i'll that is the united kingdom by sainsbury's. they have been lured back.

Sainsbury's have formed a joint venturer saying, let's open 15 stores by the end of 2015. they are kicking off in the north of england, opening more discount chains to rival the likes of aldi that have started to eat into the market share of the big four.

Sainsbury's have seen like for like sales down for two straight quarters.

If you can't beat them, join them.

We spoke to one of the leading lights of the supermarket earlier about the return of netto.

Have a listen.

Now is a great time for customers in the u.k. it has eve all over the last four or five years.

Customers want value for money.

We can give value to money.

We are very excited about this opportunity.

We have teamed up with sainsbury's. i think it is a fantastic partnership.

Nobody knows discount as well as we do.

Of course, justin king hands over the reigns of power to the commercial director.

Today is his very last day as chief executive.

People will be wanting to hear this new strategy surrounding the discounters.

The jury is still out if you are looking at analysts.

Sanford bernstein saying this is a strategic masterstroke.

They say this is a quaint right to compete.

Don't reduce your prices in your own store.

Set up a rival to cash in.

As jpmorgan and hsbc are completely mystified, they are saying this is the wrong tactic.

You should make your own store is more compelling rather than setting up more competitors.

He will have a chance to answer some of those criticisms.

Of course we all want to hear where justin king is going to go.

He hasn't given us an inkling.

Will it be to take over formula one?

That is the big question.

His last day at the top of the supermarket chain that is sainsbury's. back to you.

Caroline, thank you very much for that roundup.

From high street supermarket,

This text has been automatically generated. It may not be 100% accurate.

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