Sainsbury's finance chief on way out

SAINSBURY'S finance director Roger Matthews is to leave the troubled supermarkets group, the latest in a series of boardroom upheavals at Britain's third-largest food retailer.

The 50-year-old is taking early retirement, having been in the job for five years, the firm said. He will stay until the end of its financial year in March and the search for a successor is under way.

He earned £652,000 last year, including a special bonus of £178,000, but will not be paid any compensation, Sainsbury's stressed.

Former chairman Sir Peter Davis quit earlier this year, walking away with a £2.6m pay-off after legal wranglings.

The payout angered institutional investors in the group, which has seen its share of the food retail market, and its profits, slump dramatically in recent years.

New chairman Philip Hampton said today Matthews had indicated his intention to depart earlier this year and now planned to develop a portfolio of interests.

But there is a feeling his exit was inevitable after the group's poor performance. 'It was Davis's plan not Roger's, but he was finance director when it was done,' said one analyst.

The news comes as pressure mounts on chief executive Justin King, who is due to update the City later this month on his strategy to revive the group.