Safeway’s executive directors look could receive in excess of £5.5m in compensation if the group is taken over this year.

The supermarket group has revealed that chairman David Webster - who was paid £810,000 last year - would receive one-and-a-half times his salary in the event of a takeover. Webster also has a pension pot of £7.6m, an increase on last year of £1.37m.

Chief executive Carlos Criado-Perez, who took a 7% pay rise last year, will receive double his basic salary of £654,000 as well as a change-of-control payment that could be more than £1m.

According to the group’s annual report two of the board also have controversial two-year contracts including finance director Simon Laffin and operations director Lawrence Christensen.

The bid for Safeway from Morrisons and possible offers from Tesco, Sainsbury and Wal-Mart are being considered by the Competition Commission which is due to submit its report to the Department of Trade and Industry by August 12.

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