THE GUARDIAN: More than 37% of votes were cast against Tesco's remuneration report, with 62.3% in favour
Tesco shareholders gave the company a bloody nose at its annual general meeting today when over a third of votes were cast against its boardroom pay policy.
Britain's biggest supermarket chain suffered the largest shareholder rebellion this year, and the sixth biggest in the last decade, as investors expressed their concern over its remuneration report. More than 37% of votes were cast against Tesco's remuneration report, with 62.3% in favour - according to provisional voting data that did not show how many shareholders had abstained.
There was also a smaller revolt over the pay packages being given to Tesco's top executives, under which they would qualify for a bonus payment equal to an average of the previous two years' bonuses if they are axed or asked to leave. At least 5% of votes were cast against the re-election of US boss Tim Mason, chairman David Reid and corporate and legal affairs director Lucy Neville-Rolfe.
The result also sends a signal to Marks & Spencer ahead of its AGM in two weeks time. Many investors have already decided to vote against the M&S remuneration report in protest at the £15m pay package handed to Marc Bolland, its new chief executive, and other board room bonus payouts. Earlier this week the Association of British Insurers issued a "amber top" alert indicating that investors should think twice before voting in favour of the M&S pay plans. >>> Julia Kollewe, Julia Finch and Emily Seager | Friday, July 02, 2010
