Tesco shareholders hit out over bosses' pay

2nd July 2010, Comments 0 comments

Britain's biggest retailer, the supermarket chain Tesco, faced a revolt by shareholders on Friday when more than one third of them voted against the high pay rewards handed to its executives.

A total of 38 percent of votes were against Tesco's remuneration report at the group's annual general meeting in London.

Tesco meanwhile faced a heavy criticism from shareholders over the pay package handed to the head of the group's loss-making US operation.

Tim Mason -- in charge of Tesco's US chain Fresh & Easy -- received 4.3 million pounds (5.2 million euros, 6.5 million dollars) in the company's 2009/10 financial year, an annual rise of 11.6 percent despite a 165-million-pound loss at the fledgling venture.

Tesco chairman David Reid said the company would listen and engage with concerned investors, but defended Mason's pay.

"This is a critical stage for the US business model -- it's absolutely appropriate that the team receives not only the basic incentives, but the incentives for driving that business model," he said.

© 2010 AFP

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