Tesco has brought in a new approach to executive pay, following a significant revolt by shareholders over the issue last year.
The new system will be simpler and more collegiate, according to the UK-based supermarket group, which says it made the changes after a review and consultation with shareholders.
The changes include an end to share options and the scrapping of four existing incentive plans in favor of a single plan linked to performance.
‘Over the past year we have consulted shareholders for their views on how we reward executive directors,’ comments David Reid, Tesco’s chairman, in a statement.
‘We have designed a new structure that is simpler and more collegiate, with clear strategic financial targets, delivering broadly the same levels of remuneration as before but in a better way and more aligned with the interests of our shareholders.’
Last year, 47 percent of Tesco’s shareholders refused to back its remuneration report at the supermarket’s annual meeting.
Tesco’s AGM this year is set for July 1.
