Investors Demand Answers from JD Sports, M&S, and Sainsbury’s

  • JD Sports, M&S, and Sainsbury’s face shareholder scrutiny over low pay and wage transparency
  • ShareAction files resolutions at M&S and JD Sports for detailed disclosures on employees earning below real living wage
  • Sainsbury’s shareholders to question board about paying real living wage to all staff, including contractors
  • M&S argues responsibility for pay should remain with contractors; JD Sports highlights investments in employee benefits and young workforce development

Major UK retailers JD Sports, M&S, and Sainsbury’s are facing increased scrutiny from investors regarding low pay and wage transparency as their annual general meetings (AGMs) approach. Responsible investment group ShareAction is filing shareholder resolutions at M&S and JD Sports, calling for detailed disclosures on how many employees earn below the real living wage. ShareAction also presses for transparency on pay for third-party contractors, a growing concern in the retail sector. At Sainsbury’s AGM on Thursday (3 July), shareholders plan to directly question the board about pay policies and the feasibility of paying the real living wage to all staff, including contractors. While M&S pays its direct employees at least the real living wage, it says third-party contractors set their own pay and insists the majority earn at or above the threshold. JD Sports faces criticism for only meeting legal minimum wage requirements and a lack of clarity around contractor wages. M&S’s board recommends opposing the resolution, citing £285m invested in employee pay since 2022 and a 26% increase in its standard hourly rate. JD Sports similarly advises shareholders to reject the proposal, highlighting its investments to improve pay and benefits over the last three years. Pensions & Investment Research Consultants, Europe’s largest independent shareholder advisory firm, supports the resolutions at both companies, saying further transparency and wage commitments for contracted staff are needed to manage risk and build resilience. ShareAction CEO Catherine Howarth said: ‘Votes in support will endorse good governance and risk management while recognizing the workers who keep these businesses running.’ A M&S spokesperson said: ‘We offer an industry-leading benefits package alongside real living wage pay for direct employees and ensure most third-party contractors are paid fairly. We believe responsibility for pay should remain with contractors themselves.’ A JD Group spokesperson told Retail Gazette: ‘Over the past three years, we have invested more than £75m including removing the age banding and enhancing the remuneration and benefits of our lowest-paid UK colleagues. Our highly competitive UK colleague package is specifically designed to address the needs of our predominantly young workforce. We remain committed to providing fair wages and acting in the best interests of all stakeholders and have been engaging with shareholders ahead of our AGM on 2 July to outline our holistic approach to reward and benefits and are grateful for their supportive response. We are proud of our role as one of the UK’s largest employers of young people, often giving them their first jobs and teaching them skills and disciplines that stand them in good stead for the rest of their working lives, including long-term opportunities with JD.’

Factuality Level: 8
Factuality Justification: The article provides accurate information about the scrutiny faced by major UK retailers JD Sports, M&S, and Sainsbury’s regarding low pay and wage transparency issues. It mentions the concerns raised by ShareAction and the resolutions filed at the companies’ annual general meetings. The article also includes statements from the companies in response to these concerns and quotes from industry experts. However, it lacks personal opinions or sensationalism.
Noise Level: 4
Noise Justification: The article provides relevant information about major UK retailers facing scrutiny over low pay and wage transparency issues from investors as their annual general meetings approach. It includes details on the actions taken by ShareAction, the responses from the companies, and the stance of Pensions & Investment Research Consultants. The article stays on topic and supports its claims with evidence. However, it could provide more analysis or discussion on the long-term consequences of these issues for the retail sector.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses financial topics related to pay and wage transparency at major UK retailers JD Sports, M&S, and Sainsbury’s. It mentions their annual general meetings and the concerns of investors regarding low pay and third-party contractor wages. The impact on companies is through investor scrutiny and shareholder resolutions, but it does not directly mention any significant financial markets being impacted.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article and the main topic is about retailers facing scrutiny over low pay and wage transparency. The impact of this issue can be considered minor as it mainly involves concerns about employee wages and transparency, without any major disasters or significant consequences.

Reported publicly: www.retailgazette.co.uk