Sainsbury(J) PLC
13 July 2005
13 July 2005
J Sainsbury plc 2005 AGM Statement
In his opening remarks at the Sainsbury's AGM being held today, Philip Hampton,
Chairman, will outline the progress made by the company over the past year.
He will emphasise that a key part of Sainsbury's strategy is going back to the
basics of the brand, offering customers outstanding food and great value for
money. By rebuilding the business around this principle, the company will be
able to create long-term shareholder value.
Philip said 'When I started at Sainsbury's, the first priority was the
stabilisation of the company to enable Justin and his team to concentrate on
running the business well. It has been my job to ensure there have been no
distractions.
'My Board colleagues and I believe that Justin King and his management team are
the right people and they are doing the right things. We believe the plan
outlined last October is exactly the right way to return Sainsbury's to
long-term sustainable profitability.
'However, there is no point in having great plans if you can not make them work.
Your Board believes that incentives are vital to the delivery of these plans.
Last year the management team had limited or no financial incentives linked to
the interests of you, the shareholders. The Board decided that we needed a new
incentive plan, firmly tied to growth in both sales and profits. We consulted
widely in the design of a new incentive scheme - one that covers around 1,000
colleagues and includes all our supermarket store managers. Everyone will be
judged by the same strict and stretching criteria.
'Full details of the scheme were included in my letter to you and in our Report
and Accounts. The maximum level of payout will only be achieved if the
management team delivers a level of growth not seen at Sainsbury's for more than
a decade. Clearly if this is achieved it will also be good news for all
shareholders. There will be no payments for failure; if profits and sales do not
grow, the incentives are worthless. Your Board sees this scheme as an integral
part of our recovery.
'I would like to thank all of you for your loyalty to Sainsbury's, as
shareholders and I hope customers. I would like to thank our colleagues for
their hard work in a difficult year and all our stakeholders for their continued
support.'
Enquiries:
Investor Relations Media
Lynda Ashton Pip
Wood
+44 (0) 20 7695 7162 +44 (0) 20 7695 6127
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