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Sainsbury's fears as Hampton looks to quit to focus on RBS
Robert Lea7 Apr 2009
Sainsbury's chairman Sir Philip Hampton has told the supermarkets chain he has to quit in order to devote more time to cleaning up Royal Bank of Scotland.
Hampton was appointed chairman of RBS two months ago, a non-executive part-time job running the stricken bank's board, on a salary of £750,000 a year.
However, it has become plain that his commitment to RBS, holding the hand of new chief executive Stephen Hester as well as attempting to broker a way out of the ongoing fiasco over Sir Fred Goodwin, has meant he had to give up his chairmanship of J Sainsbury.
The supermarkets group, which pays Hampton £396,000 a year as chairman, is yet to make a formal statement about Hampton's decision to quit. But well-placed sources have confirmed Hampton has told boardroom colleagues of his plans, and that senior non-executive John McAdam, the boss of Rentokil, is actively seeking a successor.
Hampton's going could plunge Sainsbury's into crisis. It is a subject of intense speculation in the City that chief executive Justin King feels his job is as good as done at the group, and he is being lined up to fill the boots of Sir Stuart Rose at Marks & Spencer in the next couple of years.
Hampton's departure could leave Sainsbury's with a new chairman and a rookie chief executive at a time when competition among the supermarkets is as fierce as it has even been.
"Philip has been up to three days a week at Sainsbury's, and that simply is no longer viable with the RBS job," said one source. "He has been with Sainsbury's a number of years, and he thinks it is sensible and prudent to ask his fellow directors to find a replacement, which Sainsbury's are now doing."
Hampton, 55, is an experienced and highly regarded boardroom veteran, having been finance director at Lloyds TSB, BT, BG, British Gas and British Steel following a decade at Lazards merchant bank. He has been Sainsbury's chairman since 2004. His feeling that he cannot adequately discharge his responsibilities as chairman of two major companies will further fuel the debate over the capability of some businessmen to hold down multiple chairmanships and directorships.
A Sainsbury's spokesman said it has no plans to make a statement about Hampton's future, adding: "We do not comment on speculation."
Reader views (4)
Another jumping on the bandwagon to ensure an extra pension no doubt!
- Mike, London England, 07/04/2009 08:46
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RBS AGRRED TO PAY SIR PHILLIP HAMPTON £750,000 A YEAR FOR WORKING JUST OVER 1 DAY A WEEK. HE WAS GETTING £400,000 FOR WORKING 3 DAYS AT SAINSBURYS.
IS THIS ANOTHER REASON WHY THIS BANK HAD TO BAILED OUT BY THE TAXPAYER.
- Mr S Port, LONDON, 07/04/2009 01:51
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I have never seen how anyone can do a proper job if they sit on the board of more than one company! Two days here, a few hours there is just not (good) enough. Whenever I have a vote as a shareholder I tend to vote agaist retaining any board member I feel is spreading themselves to thinly. It may benefit them financially but does it benfit anyone else?
- Michael, London, 06/04/2009 17:38
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The "quitting" part is good. Quit the lot.
- Thomas, London, 06/04/2009 16:20
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