Tesco Overhauls Executive Pay in Wake of Accounting Scandal
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Tesco Plc, the U.K.’s grocery leader, is shaking up its executive bonus plan to prioritize sales growth over short-term profit in the wake of last year’s profit overstatement that sparked a criminal investigation.
Half of Chief Executive Officer Dave Lewis’s annual bonus will be determined by sales growth, with 30 percent linked to trading profit, Tesco said Thursday in its annual report. Last year, half of former CEO Philip Clarke’s bonus was determined by earnings, with only 18 percent of the amount determined specifically by sales.