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Tesco boss misses out on bonus in 2013/14
May 22, 2014 / 6:51 AM / 4 years ago

Tesco boss misses out on bonus in 2013/14

LONDON, May 22 (Reuters) - Tesco Chief Executive Philip Clarke and Laurie McIlwee, the outgoing finance director, will not be paid an annual bonus for 2013-14, a year when Britain’s biggest retailer posted a 6 percent fall in profit.

The firm’s annual report, published on Thursday, showed that neither of the men received a bonus for the year to Feb. 22.

The short-term bonus available is 50 percent based on the company’s profitability, 26 percent on strategic financial performance and 24 percent on strategic non-financial performance.

A note in the annual report said the business had made good progress against its key strategic objectives that were designed to strengthen its underlying business.

It said internet sales increased 15 percent, it received better feedback from customers and colleagues, and there was a significant reduction in the level of CO2 used across the group.

“Despite this progress the bonus profit underpin was not met and therefore the Executive Directors will not receive a bonus in respect of 2013/14,” the report said.

Last month Tesco reported a second straight year of falling profit and took a 734 million pound charge on its European and Chinese businesses.

Clarke is under intense pressure because despite having spent over 1 billion pounds on a turnaround programme for Tesco’s British business, it is still losing market share.

The grocer’s problems have been exacerbated by the April 4 resignation of McIlwee, leaving Clarke as the only executive director on Tesco’s board.

Clarke has vowed to win back shoppers with millions of pounds of price cuts. (Reporting by Belinda Goldsmith, editing by Paul Sandle)

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