Tesco shareholders have been urged to reject the grocer’s remuneration report at Friday’s AGM because of concern about excessive payoffs.
Awards to Tim Mason, former boss of Tesco’s loss-making Fresh & Easy business in the US and Richard Brasher, former UK chief executive, have come under fire, the Mail on Sunday reported.
Mason was entitled to £1.7m in “liquidated damages” and £100,000 to assist with relocating to the UK. Brasher is receiving £1.3m on similar grounds.
However, shareholder watchdog Pirc maintains the sums are excessive and should not be paid. Pirc said: “Neither of these executives appear to have suffered a loss caused by the company.”
A Tesco spokesman told the newspaper: “Payments for Tim Mason and Richard Brasher were made in accordance with their contracts, which reflected typical practice at the time they were signed.
“Our policy for new appointments is that termination payments in lieu of notice will be based on base salary and benefits only.”
Marks & Spencer may also facer anger at its AGM next month about the reward package of chief executive Marc Bolland.