Partner Article

Tesco to face shareholder grilling

Tesco is set to face a grilling from shareholders for the first time, after posting a shock profit warning in January.

The supermarket giant has lost market share to competitors in recent months and has received mounting criticism over its unprofitable US venture Fresh & Easy.

Company boss Philip Clarke has waived his £372,000 bonus, while 5,000 top managers are set to receive a reduced annual bonus.

Despite this however, Clarke still received a salary of £1.6 million last year.

It is now being recommended by shareholder body Pirc that investors vote against the groups remuneration report, as the pay policy has the potential to be “wholly excessive”.

It has been found that combined pay, including historic awards that were awarded this year, exceeded 300% of executives salaries.

In the 13 weeks to 26 May, Tesco’s like-for-like sales fell by 1.5%, despite a £1 billion investment to turn the firm around.

The retailer’s market share also fell, from 31.4% to 31% in the 3 months to 10 June.

This was posted in Bdaily's Members' News section by Ruth Mitchell .