PROXY REPORT 11/07/2018
Equal Pay Lawsuit
The Company is currently facing claims brought by approximately 1,000 employees in the Employee Tribunal for equal pay under the Equality Act 2010. The majority of the claimants are female store employees who feel they are being unfairly paid compared to the pay of warehouse employees who are largely male. The claim asserts that the work of the claimants is of equal value to that of those in the warehouse and thus that the different pay rates are discriminatory. Since these claims are at an early stage, it is unclear as to how they will develop.
Item 2: Approve the Remuneration Report
The structure is slightly weighted more towards rewarding long-term performance, the maximum bonus exceeds guidelines, accelerated vesting in the event of a change of control is possible, and qualitative criteria for the STI exceed guidelines. The quantum for the year is excessive. Furthermore, we are concerned that the annual bonus has increased while operating profit and EPS have declined. Over a five year period, while absolute bonuses have remained high, we do not see any sustainable growth in key operating metrics.
Item 13: Re-elect the Chairman
The Company
J Sainsbury is principally engaged in food, general merchandise and clothing retailing and financial services. Co. is organized into four operating segments: Retail (Food), which provides a range of food, including organic produce; Retail (General Merchandise and Clothing), which provides a range of products across home, clothing, technology and leisure; Financial Services (Sainsbury's Bank plc and Argos Financial Services entities), which provides products such as credit cards, insurance, travel money and personal loans; and Property Investment (The British Land Company PLC and Land Securities Group PLC joint ventures). At Mar 11 2017, Co. had 605 supermarkets and 806 convenience stores.
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