Tesco’s chief executive Sir Terry Leahy has agreed to move to a one-year rolling contract to fall in line with corporate governance best practice.
Sir Terry is currently on a two-year rolling contract, which means he would receive twice his annual salary, which is £916,000, if he lost his job - even for poor performance. A proposal for the change has been sent to shareholders for approval. A Tesco spokesman said Sir Terry had signalled his willingness to move to a one-year contract last year.