Tesco Shareholders Deliver Stinging Rebuke to Board Over Pay at Today's AGM

WASHINGTON, July 2 /PRNewswire/ -- In a stinging rebuke to the Tesco PLC (LON: TSCO) board of directors, shareholders today cast 38% of their votes against the Directors' Remuneration Report at the company's Annual General Meeting in London, based on preliminary results released by the company.  The company did not disclose the additional number of shares withheld on the Report.

"The extraordinary opposition vote reflects investor outrage over the excessive pay awarded to Tim Mason, Tesco's second highest paid executive, despite the dismal performance of the U.S. Fresh and Easy business he oversees," said Michael Garland, Director of Value Strategies for the CtW Investment Group, which had urged shareholders to oppose the remuneration report.  

Today's repudiation of Tesco's executive compensation comes at a difficult moment for the Tesco board.  In addition to anger over Mr. Mason's pay, directors must also confront mounting investor concerns with the aggressiveness of the company's accounting, the transparency of its U.S. performance and pay disclosures, and the long-term viability of its U.S. business.

"The onus is now on the board not only to restore the link between pay and U.S. performance for Mr. Mason, but also to address the underlying concerns with Fresh & Easy's future viability," Mr. Garland said.  "As an immediate first step, the board needs to disclose metrics and targets that will allow shareholders to evaluate the performance of Fresh and Easy and its executive management going forward."

The CtW Investment Group works with pension funds sponsored by unions affiliated with Change to Win, a coalition of U.S. unions representing nearly six million members. These funds have over $200 billion in assets and are substantial long-term Tesco shareholders.  

SOURCE CtW Investment Group