Sainsbury faces a difficult annual meeting next Monday as it emerged today that the National Association of Pension Funds is to recommend that shareholders block the approval of executive pay.

According to newspaper reports, the move comes after the supermarket failed to reach a compromise on former chairman Sir Peter Davis’ £2.4m bonus award.

The NAPF has decided it can no longer recommend voting in favour of the pay policy and it is now urging members, who control up to 25% of the stock market, to vote against the resolution.