Menu
01/07/2004
Sainsbury's chairman steps down
Sainsbury's chairman, Sir Peter Davis, has stepped down from his post after shareholders reacted angrily to his multi-million pound bonus – awarded at a time when the retailer's shareprice is struggling.
Sir Peter's three-year reign as Chairman and as a Director came to an end after news of his £2.4 million bonus went down badly with shareholders.
Philip Hampton, former non-executive director of Belgacom, has been appointed as his successor. Mr Hampton takes up his £395,000 a year role on July 19.
Lord Levene, the Senior Independent Director and Chairman of the Nomination Committee, said: "We will now have the powerful combination of Philip Hampton with strong financial and strategic experience as Chairman and Justin King, a Chief Executive with proven retailing skills.
“Consultations with a number of major shareholders have shown that there is substantial support for this appointment.”
Sir Peter's exit came on the day that Sainsbury's issued its trading update for the first quarter of 2004/5, which concluded that underlying profit before tax for 2004/05 will be "significantly below consensus market forecasts". The market consensus stood at £505 million.
After today's announcements, the Sainsbury shareprice dipped by 16 pence to 268.75 pence shortly after 2pm.
Total sales growth for Sainsbury’s including petrol was up 1.9% for the quarter compared with 0.8% in the fourth quarter of last year. On a like-for-like basis, sales were up 1% compared with –0.9% for the fourth quarter last year. Buoyant trading in petrol has boosted this sales performance.
A "thorough review of the business" will be carried out by chief executive Justin King – the results of which will be known on October 19.
"While this review is taking place, Sainsbury’s is delaying future uncommitted investment in store developments and this move is likely to reduce capital spending in 2004/5 from an estimated £700 million to below £500 million before store acquisitions. In addition we will be focusing all resources on customer facing activities," the company said in a statement.
The review will encompass product quality, range, price and promotional activity; operational processes and systems; supply chain; central costs; and the store estate and property assets.
(gmcg)
Sir Peter's three-year reign as Chairman and as a Director came to an end after news of his £2.4 million bonus went down badly with shareholders.
Philip Hampton, former non-executive director of Belgacom, has been appointed as his successor. Mr Hampton takes up his £395,000 a year role on July 19.
Lord Levene, the Senior Independent Director and Chairman of the Nomination Committee, said: "We will now have the powerful combination of Philip Hampton with strong financial and strategic experience as Chairman and Justin King, a Chief Executive with proven retailing skills.
“Consultations with a number of major shareholders have shown that there is substantial support for this appointment.”
Sir Peter's exit came on the day that Sainsbury's issued its trading update for the first quarter of 2004/5, which concluded that underlying profit before tax for 2004/05 will be "significantly below consensus market forecasts". The market consensus stood at £505 million.
After today's announcements, the Sainsbury shareprice dipped by 16 pence to 268.75 pence shortly after 2pm.
Total sales growth for Sainsbury’s including petrol was up 1.9% for the quarter compared with 0.8% in the fourth quarter of last year. On a like-for-like basis, sales were up 1% compared with –0.9% for the fourth quarter last year. Buoyant trading in petrol has boosted this sales performance.
A "thorough review of the business" will be carried out by chief executive Justin King – the results of which will be known on October 19.
"While this review is taking place, Sainsbury’s is delaying future uncommitted investment in store developments and this move is likely to reduce capital spending in 2004/5 from an estimated £700 million to below £500 million before store acquisitions. In addition we will be focusing all resources on customer facing activities," the company said in a statement.
The review will encompass product quality, range, price and promotional activity; operational processes and systems; supply chain; central costs; and the store estate and property assets.
(gmcg)
Related UK National News Stories
Click here for the latest headlines.
17 May 2004
Grade takes on challenge of BBC Chairman
Former Channel 4 boss Michael Grade stepped into the office of the BBC Chairman in the corporation's media centre this morning with two issues at the top of his to-do list. The first is to recommence the selection process for the next Director-General of the BBC; the second is to guide the BBC towards the impending renewal of its royal charter.
Grade takes on challenge of BBC Chairman
Former Channel 4 boss Michael Grade stepped into the office of the BBC Chairman in the corporation's media centre this morning with two issues at the top of his to-do list. The first is to recommence the selection process for the next Director-General of the BBC; the second is to guide the BBC towards the impending renewal of its royal charter.
02 October 2014
Former Chairman Of BNP Expelled
The former Chairman of the British National Party (BNP), Nick Griffin, has been expelled from membership. A Conduct Committee established by new Party Chairman, Adam Walker, took the step in a letter to Mr Griffin on Wednesday. Mr Jefferson of the Conduct Committee stated: "This has been a difficult decision to make and not one taken lightly.
Former Chairman Of BNP Expelled
The former Chairman of the British National Party (BNP), Nick Griffin, has been expelled from membership. A Conduct Committee established by new Party Chairman, Adam Walker, took the step in a letter to Mr Griffin on Wednesday. Mr Jefferson of the Conduct Committee stated: "This has been a difficult decision to make and not one taken lightly.
06 August 2013
Charities Urged To Look At Salaries Paid To Leaders
A charities regulator has warned that the industry risks falling into "disrepute" over the large salaries paid to some organisations staff. It follows a report by the Daily Telegraph that found salaries of £100,000 or more were paid to some 30 staff at 14 leading UK foreign aid charities last year.
Charities Urged To Look At Salaries Paid To Leaders
A charities regulator has warned that the industry risks falling into "disrepute" over the large salaries paid to some organisations staff. It follows a report by the Daily Telegraph that found salaries of £100,000 or more were paid to some 30 staff at 14 leading UK foreign aid charities last year.
22 May 2012
Tesco Boss Refuses Bonus
The boss of a leading supermarket has turned down a bonus worth nearly £400,000. Philip Clarke, of Tesco, announced the decision as disappointing sales led the store’s UK profits to fall to £2.5bn.
Tesco Boss Refuses Bonus
The boss of a leading supermarket has turned down a bonus worth nearly £400,000. Philip Clarke, of Tesco, announced the decision as disappointing sales led the store’s UK profits to fall to £2.5bn.
01 June 2011
Further Delays Over UK Airports Liquid Ban
An MEP has accused British airports of unnecessary delays in overturning the ban on liquids on board planes. New hi-tech screening machines, capable of detecting liquid explosives, are ready for employment, however the Transport committee chairman Brian Simpson said they would not be rolled out on cost grounds.
Further Delays Over UK Airports Liquid Ban
An MEP has accused British airports of unnecessary delays in overturning the ban on liquids on board planes. New hi-tech screening machines, capable of detecting liquid explosives, are ready for employment, however the Transport committee chairman Brian Simpson said they would not be rolled out on cost grounds.
-
Northern Ireland WeatherToday:Cloudy with longer spells of rain during the morning, this rain heavy at times. Generally brighter in the afternoon, but with scattered and at times heavy showers. Maximum temperature 14 °C.Tonight:A mainly dry evening and night with isolated showers dying out and some longer clear spells. Then it will cloud over towards morning with some heavy showers. Minimum temperature 7 °C.
