Sainsbury's clarifies bonuses and CSR policy

Peter Crush, 20 November 2009

Sainsbury's has responded to yesterday's story, that its bonus structure "bears no correlation to its stated CSR credentials".

At the CIPD conference, where executive reward manager Leigh Harrison was speaking, Sainsbury's was asked if bosses were part-rewarded on whether the extra spend they were targeting from customers came from sales of healthy foods (as its CSR report says it wants to promote) rather than unhealthy ones.

While agreeing that they did not, Harrison said: "The cash part of our bonus plan has, for many years, contained an element for individual performance. This is measured by the achievement of a range of specific objectives, each of which are bespoke to individual directors and managers. In the case of Sainsbury's board and equally for many members of the wider management team, these targets are directly linked to our CSR principles."

She added: "For example, Gwyn Burr, customer director, has bonus targets that are linked to our goal of being "best for food and health".

According to Harrison, the share element of its annual bonus plan, which was introduced this year, states amongst other criteria that managers must adhere to the principle that it ensures products are "as tasty and healthy as they can be".

Harrison pointed out Sainsbury's has invested £3million directly to tackling childhood obesity through its ‘Mind, Exercise, Nutrition, Do it!' (MEND), scheme.

Harrison said: "To date we have run 135 programmes, with approximately 4,000 family members benefiting. The average overweight child involved in the scheme has lost over an inch from their waist, with 97% parents reporting a diet improvement."