Sainsbury’s board is preparing to take on its former chairman Sir Peter Davis to prevent him receiving any of the £2.3 million of free shares he was awarded.
The supermarket’s directors, who originally signed off the payment, are understood to have instructed their solicitors that they are against any sort of bonus payment to Sir Peter.
The board is aware that legal action could be protracted, but are determined to stand their ground.
Initially it had been hoped that Sir Peter’s departure would defuse the row. Senior independent director Lord Levene of Portsoken held a series of face-to-face meetings with important shareholder groups in a an attempt to restore investor confidence ahead of next week’s annual shareholders’ meeting.
Sir Peter’s bonus was 86 per cent of the maximum possible despite and eight per cent downturn in profits and falling sales. The former chairman also presided over a debacle when shareholders threw out his choice of successor, Sir Ian Prosser.
No comments yet