The new boss of Sainsbury's has missed out on an annual bonus after the supermarket posted its first loss in a decade.

Mike Coupe's total pay package dropped to £1.5m in the year to March 14, down from £2m the previous year, despite being promoted to the top job last July.

Mr Coupe took over from long-standing predecessor Justin King at a tough time for the chain amid pressure from discounters Aldi and Lidl as well as damaging food price deflation.

Sainsbury's last month reported a £72m loss for the year to March 14, with the figure dragged lower by a one-off write-down of £628 million on the value of its property estate.

But even when stripping out exceptional items, the grocer's 14.7 per cent fall in underlying profits to £681m was the first decline since the start of Mr King's successful turnaround strategy in 2005.

Like-for-like sales dropped 1.9 per cent over the year and Mr Coupe warned food price deflation meant the chain did not expect an improvement this year.

Annual bonuses were not awarded to Mr Coupe or any senior directors for the year, although the chief executive was awarded £458,000 worth of deferred share awards, which will pay out in 2017, according to the annual report.

He also landed a 1.75 per cent pay rise, taking his annual salary for the year to next March to £915,750 - up £15,750.