The National Association of Pension Funds has told its members to abstain from voting on the re-election of three Tesco directors on two-year rolling contracts at its agm on June 13.
Tesco has agreed to switch to one-year contracts for new executive directors, but said two-year contracts would stay for Rowley Ager, Andrew Higginson and David Reid.
A spokesman for the NAPF said contracts of more than 12 months were now the "exception rather than the rule in the FTSE 100".
>>p64 Fat cats or role models?

chip and pin cheer
Early indications from the Northampton chip and pin trial are extremely positive, according to retailers involved in the pilot.
Speaking at Retail Solutions in Birmingham, Matt Hunt, implementation director at the chip and pin programme, said the trial would extend to 1,000 stores by the end of the month.
A detailed report evaluating lessons learned from Northampton will be published in August.

prices up 0.31%
Food prices rose by 0.31% in May over the previous month, and 0.61% compared to the same period last year, according to the BRC shop price index.
Non-food inflation was higher at 0.6% and 0.75% respectively.

Safeway has re-introduced its petrol promotion, first used over the bank holiday, offering customers savings of up to 40 pence per litre, linked to amount they spend in store.
Director of communications Kevin Hawkins said: "We saw a massive increase in sales over the bank holiday weekend and we want to give more people a chance to benefit from this amazing promotion."

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