Tesco has changed how it rewards its senior management following last year’s shareholder revolt over executive pay.
The supermarket giant is scrapping share options for its executives and has merged four separate incentive schemes into a single plan. The changes would make its pay “simpler and clearer for all”, the retailer said.
In a further change, the pay of Fresh & Easy boss Tim Mason – who is also deputy group CEO – will no longer be linked to the performance of the company’s struggling US business.
The shake-up comes after a host of shareholders last year voted against the proposed remuneration for Tesco’s bosses. Almost half opposed the pay package put forward by the board.
Clarke unveils ‘new vision’ for Tesco as Broadbent is named next chairman (11 May 2011)
Sir Terry sells Tesco shares worth £3m (20 October 2010)
Tesco defends pay of Fresh & Easy chief Mason (18 June 2010)
Tesco directors cash in shares before tax hike (13 February 2010)
Tesco share option plan survives AGM rebellion (6 July 2009)