Sainsbury's, Britain's second-largest supermarket chain, is proposing to remove the cap on CEO Simon Roberts' maximum pay, potentially allowing him to earn up to £7.3 million if performance targets are met. The revised remuneration policy faces a binding shareholder vote at the company's annual general meeting next month. The proposal has reignited debate over executive compensation amid a cost-of-living crisis that is squeezing both customers and staff, according to the source report.

Sainsbury's CEO could earn 200 times the average shop-floor worker under new policy

The source report notes that Roberts' actual pay for the previous year was £5.4 million, approximately 200 times the earnings of a typical Sainsbury's employee. Removing the cap could push that multiple even higher. For context, Tesco's former CEO Ken Murphy earned £10.8 million—420 times the average shop-floor worker's pay. As reported, Sainsbury's proposal is seen by critics as insensitive when many households are struggling with rising prices and stagnant wages.

Why 18,000 retail job cuts frame the pay debate

According to the source, the broader retail sector has shed 18,000 jobs in the past year, as reported by Bloomberg News. Factors include soaring inflation triggered by geopolitical events and Labour government policies such as higher National Insurance contributions and minimum wage increases. Supermarkets argue their profit margins are razor-thin, especially under pressure from discount giants Aldi and Lidl, which now command nearly 20% of the grocery market share. The job cuts add a layer of tension to the pay proposal.

ShareAction's AGM challenge: from £13.45 real living wage demands to votes

Campaign group ShareAction plans to confront both Sainsbury's and M&S at their upcoming AGMs, demanding commitments to pay the Real Living Wage—currently £13.45 per hour outside London and £14.80 inside London, well above the statutory minimum of £11.72. While Sainsbury's, Tesco, and M&S have awarded above-inflation pay rises of 5% to 6.5%, the source says their base rates still fall short of that voluntary benchmark. ShareAction argues that raising CEO pay caps is indefensible when frontline staff struggle with the cost of living.

Will Sainsbury's shareholders approve the £7 .3 million cap removal?

The source reports that Sainsbury's claims its major shareholders are 'overwhelmingly supportive' of the new policy. however, the binding vote will test that assertion. Campaigners will lobby investors to reject the proposal. The outcome remains uncertain—and the report includes no statements from institutional investors themselves. If the vote fails, Sainsbury's would need to return with a revised remuneration policy.