Sainsbury's shareholders are concerned that potential candidates for the chief executive's job are being deterred by Sir Peter Davis's elevation to chairman next year.
A leading shareholder has observed that the group has been searching for more than six months but appears no closer to finding Davis's successor.
Shareholders are unhappy about Davis's elevation, but the store has argued that the decision was taken because current chairman Sir George Bull retires in March, the same time Davis's contract expires, and it was felt it would be destabilising for the business to have new people in both roles at the same time.
Davis is also under pressure from the City. With less then six months of his four-year programme to go, sales are continuing to fall and the company is well short of the set targets.
One investor said: “The focus now is on Christmas. If Sainsbury's has a bad time then there will be enormous pressure for change.”
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