Sainsbury(J) PLC (JSAIY.PK, SBRY.L), the parent company of British supermarket chain Sainsbury's Supermarkets Ltd., Wednesday said Justin King has decided to step down in July after 10 years as CEO. He will be succeeded by Mike Coupe, currently the Group Commercial Director.
David Tyler, chairman, said, "Justin is a truly exceptional leader, who has reshaped Sainsbury's during his 10 years as CEO, as well as playing a leading role in the sector and wider business world. The Board thanks him for his outstanding achievements in 'Making Sainsbury's Great Again'. He leaves a lasting legacy, with the Company stronger than ever.''
King will stand down as CEO at the Annual General Meeting on July 9 and Coupe will assume the role effective that day.
Coupe will continue as Group Commercial Director and CEO Designate in the interim and John Rogers will continue as Chief Financial Officer.
As per the contract with King, he could be entitled to a cash severance payment of up to 175 percent of his base salary, worth potentially up to 1.7 million pounds at departure. However, he has offered to waive the cash entitlement and any payment to him is aligned with the performance of the company following his departure.
Coupe will receive a salary of 900,000 pounds as Chief Executive. The overall variable incentive opportunity for the CEO role will remain unchanged, but it will be rebalanced towards the long-term award.
52-year-old King was appointed Chief Executive Officer on March 29, 2004. He was previously the Director of Food at Marks & Spencer Group plc. He is Non-Executive Director of Staples Inc since September 2007.
Prior to this, King held several senior positions at ASDA/WalMart and Häagen Dazs UK. Much of his early career was with Mars Confectionery and Pepsi International.
In 2013, King was named Most Admired Business Leader by Management Today as well as Britain's Most Impressive Businessman in the IPSOS-MORI Captains of Industry Report.
King played a key role in the company's growth during his ten years at the helm.
Commenting on his decision, King said, "This was not an easy decision for me to make, and in truth it will never feel like the right time to leave a company like Sainsbury's. It has been a privilege to have led the Company for the past 10 years...''
Mike Coupe, 53, was appointed Group Commercial Director on July 19, 2010. He is responsible for Trading, Marketing, Supply Chain, IT and Online. He has been a member of the Operating Board since October 2004. He joined as Trading Director and is an Executive Director of J Sainsbury plc since August 1, 2007.
Prior to joining Sainsbury's, Coupe was a Board Director of Big Food Group Plc and Managing Director of Iceland Food Stores. He has previously worked for ASDA and Tesco, in a variety of senior management roles. He began his career at Unilever.
The stock is down 2 percent on the LSE at 349.00 pence.
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