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  3. Tesco has overhauled its pay policy for top executives as it tries to head off a repeat of last year’s embarrassing shareholder

Tesco has overhauled its pay policy for top executives as it tries to head off a repeat of last year’s embarrassing shareholder

admin2020-02-12  73
问题    Tesco has overhauled its pay policy for top executives as it tries to head off a repeat of last year’s embarrassing shareholder revolt when almost half its investors failed to back its compensation report.
   The new approach, revealed in the published retailer’s annual report, will see the scrapping of an incentive scheme previously enjoyed by Tim Mason, Tesco’s US boss. His pay became the focus of much of last year’s shareholder anger, with investors arguing it was excessive considering the big losses being racked up by Tesco’s US start-up, Fresh & Easy. Tesco said that it was making changes after a review and consultation with shareholders. The retailer’s annual report stated: "In light of Mr Mason’s appointment to the roles of deputy chief executive and chief marketing officer, it has been agreed that Mr Mason will no longer be eligible for awards under the US annual or long-term incentive programmes. Mr Mason will therefore no longer participate in the US long-term incentive plan and the 2m shares granted to him four years ago will lapse."
   Despite the changes, under which Tesco’s current four long-term incentive plans will be merged into one single plan, Philip Clarke, the group’s chief executive, who started his job in March, can earn an annual long-term bonus of up to 275% of his ￡1.1m salary, and a further 250% through a short-term bonus. Meanwhile, Mason has been awarded a bonus of 80% of his 5832,000 salary—despite losses at Fresh & Easy rising by 10% to ￡181m last year. The company said that the bonus was a reward for hitting "strategic goals" such as growing US sales and improving customer feedback. The package means that Mason remains the second-highest-paid Tesco executive, with total pay of ￡3.1m, down from ￡4.3m, and trailing only Sir Terry Leahy, the former chief executive.
   Having cashed in Tesco shares worth 1.8m during last year, Mason will now be forced to rebuild his personal shareholding in the retailer, as it has fallen below new levels imposed by the compensation committee for "full participation in the long-term performance share plan."
   The debate over boardroom pay had already been reignited this week with a survey showing that chief executives of blue-chip companies enjoyed an average pay rise of 32% last year, compared with a 7% rise in the FTSE 100, and a 2% increase in workers’ pay, according to the pay consultancy MM&K and corporate governance group Manifest. Sarah Wilson, chief executive of Manifest, said: "Tesco’s move will encourage shareholders to keep on plugging away on executive pay, as the effort is worth it Is it linked to the fact that there is a new chief executive and the fact they got a slapping at last year’s annual general meeting? Who knows? Tesco deserves credit, but the devil will be in the detail."
   One detail involves the retailer seeking to bump up the chief executive’s potential 275% long-term bonus in "exceptional circumstances." The annual report added: "To ensure that we have sufficient funds to grant awards in exceptional circumstances, in line with usual practice, we are seeking shareholder approval to increase the maximum award opportunity under the performance share plan to 350% of base salary."
   [A] has overhauled its pay policy for top executives to calm shareholders’ discontent.
   [B] believes Tesco’s move will encourage shareholders to keep improving the pay policy.
   [C] got a total pay of ￡3.1m, next only to Sir Terry Leahy who got that of ￡4.3m.
   [D] won’t be considered eligible to be included in the US long-term incentive plan any more.
   [E] can earn a long-term bonus of up to ￡3.025m every year.
   [F] indicates that Tesco deserves credit because it did well in every detail.
   [G] did a survey with Manifest which showed that the FTSE 100 got a 7% rise last year.
MM&K
选项
答案G
解析 MM＆K出现在第五段。该段首句提到，MM&K和Manifest所做的调查对一些数据作了比较，其中包括金融时报100指数的涨幅一一过去一年里仅涨了7％。G项表述与原文相符，其中7％rise、FTSE 100和last year均为文中原词复现，did a survey with Manifest与原文的according to the pay…group Manifest相对应，故确定G为答案。
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