Tesco defends pay of Fresh & Easy chief Mason
Tesco has been forced to defend the pay of Fresh & Easy chief executive Tim Mason amid criticism from a US investor.
CtW Investment Group has written an open letter to Tesco shareholders urging them to take “decisive action” against the high pay of executives at next month’s AGM.
The letter criticises the perceived failure of the supermarket’s remuneration committee to link pay to performance.
It claims Mason – who will become Tesco’s deputy chief executive next March – is paid too much for presiding over the company’s US operation, which has struggled to turn a profit.
But Tesco defended his salary, saying: “Our approach to executive pay is based on rewarding good long-term performance and we have just recorded another record year of sales and profits and a 26th consecutive year of increased dividends.
“The performance bonuses for Tim Mason reflect the progress he has made in developing the Fresh & Easy business despite the severe economic conditions that have meant a slower than planned opening programme.
“We will continue to meet with shareholders to explain our approach ahead of next month’s AGM.”
