Sir Peter Davis, former chairman of Sainsbury who left the retailer last July, received £3.25m last year.

Sainsbury’s annual review, released today, showed that Sir Peter’s salary also included a £3m pay-off. He will also continue to receive £500,000 a year until the end of July.

Justin King, Sainsbury’s chief executive, received £1.1m last year with a bonus of £385,000 and a basic salary increase from £675,000 to £700,000.

The increase comes despite Sainsbury recording pre-tax profits last month of £15m for the year to end March 21, a drop from £610m the previous year.