SAINSBURY’S boss Mike Coupe is celebrating a £1.1 million pay rise for “hitting financial targets,” despite receiving severe criticism for stripping staff of their benefits.

Mr Coupe, who is seeking to merge Sainsbury’s with rival supermarket chain Asda, has received a £3.4m pay package for the last fiscal year, according to the company’s annual report.

The chief executive’s basic salary rose 2 per cent to £943,000 and his total pay includes a £427,000 bonus and £1.8m in share awards.

Mr Coupe has been criticised for pocketing such a massive amount while axing staff benefits such as paid breaks and bonus.

Labour MP Siobhain McDonagh, who has been leading a campaign for Sainsbury’s to call off its attack on the workforce, quipped that staff were forced to “work well, for less.”

The Mitham and Morden MP asked: “What self-respecting chief executive would accept a million-pound pay rise while simultaneously slashing the salaries of 9,000 of his most loyal and long-standing staff?"

More than 100 MPs have written to Prime Minister Theresa May to complain about the effective pay cut.

Business select committee chairwoman Rachel Reeves has contacted the company to probe the move and asked Sainsbury’s to clarify whether the restrictions on bonuses for staff would be reflected at executive level.

Kevin O’Byrne, who was appointed as Sainsbury’s finance chief in January last year, received £1.4m, while Argos boss John Rogers, whose firm is a subsidiary of Sainsbury’s, took home £2.2m, up from £1.6m the year before.

Mr Coupe, Mr Rogers and Mr O’Byrne received a total of £929,000 in bonuses.

A spokesman for Sainsbury’s said its executive pay as set by the remuneration committee and bonuses were “subject to stretching targets.”

He added: “Mike and other executives were not awarded an annual bonus last year as the business did not hit its targets.

“The business has hit a number of targets this year, including increasing profit, which is why we have paid a bonus to eligible colleagues across the group.”