Sir Peter Davis is continuing to earn a salary of £800,000 a year as Sainsbury’s new chairman, £125,000 more than received by Justin King, his successor as chief executive.
A Sainsbury’s spokeswoman admitted that the company had not yet decided whether Sir Peter’s salary will fall when he goes from full to part-time chairman.
She said: “The intention is that Sir Peter will go from full to part-time chairman. What we don’t know is when that will happen or to what degree he will go part-time. When that has been decided, then the remuneration committee will take a look at his salary.”
Sir Peter became Sainsbury’s chief executive in March 2000, took over from Sir George Bull as chairman this week and has agreed to remain in the post until July 2005.
But many city analysts believe he is likely to remain in the post until such time. One said: “ I can’t see Sir Peter staying on as chairman until July next year. It is only going to get worse. As soon as the non-execs find a new chairman, I reckon that he will take over almost immediately and Sir Peter will be off.”
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