Tesco shareholders are being encouraged to vote against pay proposals for senior management ahead of the grocery giant’s AGM on Friday.
Investor group Pensions and Investment Research Consultants (Pirc) is encouraging Tesco shareholders to vote against key measures at Friday’s annual general meeting, with executive renumeration expected to come under scrutiny.
Pirc, one of the UK’s largest investor groups, is asking investors to oppose chief executive Dave Lewis’s pay deal, which would see him receive a bonus that is five times his salary if all next year’s targets are met. Last October, Tesco said it would review Dave Lewis’ bonus.
According to the Daily Mail, Pirc considers the deal excessive and that the ratio of his pay to the average employee too great.
The group is also reported to believe the “golden hello” payments made to Lewis and finance director Alan Stewart, which bought them out of their previous roles, were also inappropriate. Meanwhile, it is also recommending shareholders vote against appointment of John Allen becoming chairman because he has retained his role as chairman of Barratt Developments.
Pirc’s comments have set expectations for a turbulent AGM on Friday, which is the first opportunity for shareholders to voice their reaction to last year’s accounting scandal at Tesco and the launch of the Serious Fraud Office’s investigation.