Tesco has come in for a fresh round of criticism over the pay of its senior executives.
Investment group CtW has written to senior independent director Patrick Cescau calling on him to voice shareholders’ concerns over pay and the perceived underperformance of Tesco’s US business at tomorrow’s AGM.
"Poor performance and inadequate disclosure at Tesco's US venture are at the heart of mounting investor concerns over the board's strategic oversight and commitment to transparency and pay for performance," CtW wrote.
Cescau joined the Tesco board in 2009 after standing down as chief executive of fmcg giant Unilever. His involvement comes after CtW earlier this month wrote to Tesco shareholders questioning the £7m pay of Fresh & Easy boss Tim Mason.
Meanwhile, shares in the Tesco took a tumble yesterday after City analysts questioned the profitability of the UK’s largest retailer. Citigroup said Tesco had adopted a “more aggressive policy” than rivals over its accounting practices.
“If we put Tesco on more comparable accounting to other companies in our sector, it appears to be a much less profitable entity,” the broker claimed.
Shares in Tesco slid by 2.5% in the wake of the comments.
Tesco takes over US supplier duo (22 June 2010)
Tesco defends pay of Fresh & Easy chief Mason (18 June 2010)
Cescau is the latest heavyweight to join Tesco's non-execs (17 January 2009)