Sainsbury’s has confirmed that chairman Sir Peter Davis is to step down with immediate effect.
Sir Peter is leaving the chain a year early after shareholders were said to be unhappy at his £2.4 million bonus for the 2003/04 financial year.
In May, Sainsbury’s unveiled a 2.9 per cent fall in profits with institutions apparently threatening to vote against the company’s remuneration report at the annual meeting in July. Underlying profits for the year dropped to £675m from £695m in 2003.
The chairman is the fourth senior executive to leave the group in four months. Stuart Mitchell, Sainsbury’s head of supermarkets, departed in May, shortly behind Sara Weller, the deputy managing director, and Keith Evans, head of non-food.
Sir Peter joined Sainsbury’s four years ago with a strong track record of success. However, although he produced some turnaround in Sainsbury’s fortunes, he failed to improve them quickly enough to impress investors.
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