Sainsbury’s shareholders back Coupe despite failed Asda deal

Bloomberg

J Sainsbury Plc shareholders gave Chief Executive Officer Mike Coupe a vote of confidence at the supermarket operator’s annual general meeting, despite declining sales and the collapse of its planned acquisition of Walmart Inc’s Asda.
More than 99 percent of investors voted in favour of keeping Coupe on the board. Still, some investors questioned Chairman Martin Scicluna on Sainsbury’s falling share price, failed merger, the board’s pay and why he isn’t searching for a new CEO at the meeting.
Coupe “is the right guy to be serving us right now,” the chairman said.
The questioning came three months after UK regulators blocked Sainsbury’s planned purchase of Asda on concerns the deal would lead to price hikes and a supplier squeeze. Coupe has faced scrutiny since then over his proposed pay packet of 3.9 million pounds ($4.9 million), as Sainsbury’s sales decline.
Coupe defended his pay when announcing first quarter results, saying it “absolutely” reflected the company’s financial performance last year. “My pay is set by a remuneration committee. I’m set a series of targets at the beginning of any financial year and my performance and the business’s targets are what determines my overall package,” he said on a call with reporters.
The grocer reported declining sales in general merchandise, clothing and grocery. Its share price has fallen 36 percent since the merger was announced in April last year.
“It’s a hugely competitive market and we have to make the business more efficient in order to compete with discounters,” Coupe said.
While about 90 percent of investors approved the board’s pay packet, some vented their frustration.
“You’re trudging along failing to deal with the market, competition and not making a proper return,” John Farmer, a shareholder, told Scicluna.
“You should get rid of this useless CEO. It’s a lamentable situation.”