 |
| Tesco CEO Philip Clarke (Reuters/Suzanne Plunkett) |
Tesco chief
Philip Clarke has turned down an annual bonus of $588,000 as he was
disappointed by weak performance from the world’s third-largest retailer at the
British market.
“I decided
at the beginning of the year that I would decline my annual bonus for 2012,”
Clarke said in a statement to Reuters. “I wasn't satisfied with the performance
in the UK and I won't take the bonus. I'm confident that we're tackling the
right issues.”
Shares in
Tesco have lost almost a quarter of their value this year after the company
posted its first drop in UK sales and profits for at least 30 years due to the
recession. However, the group saw surging profits from overseas business last
year. Now the company is going to invest about one billion pounds in shops and
services in Britain in order to boost sales.
However,
Clarke’s fellow board members didn’t follow his example. Last week Tesco
revealed that its top 5,000 managers will receive a reduced annual bonus of
16.9% of the maximum payable under their scheme. Executive directors
will receive 13.54% of the maximum.
Tesco
reviewed its pay policy for top executives after high-profile shareholders
voiced outrage over pay rises despite weak financial results at the firm. The
phenomenon dubbed the "shareholder spring" has been seen in many
underperforming companies, forcing Aviva chief Andrew Moss, and Sly Bailey,
head of newspaper group Trinity Mirror to leave their positions this month.
Related Article:
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.