Sainsbury's has reversed its controversial decision to give former chairman Sir Peter Davis shares worth about £2.3 million.
The group's pay committee said it was unable to support its original recommendation to award 864,000 shares to Sir Peter for 2003/4.
The company is facing an investor revolt over the award in a year when annual profits fell by 2.9 per cent to £675 million.
The committee said it had changed its mind after seeing the conclusions of a report on the firm by new chief executive Justin King, who is undertaking a wholesale review of the business.
Sainsbury's said it would still be putting the original remuneration report, which includes the proposed award to Sir Peter, for approval to next Monday's annual meeting. Sir Peter quit as chairman last week following pressure on the company from institutional shareholders.
Friday July 09, 2004
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