Tesco is at the centre of a new storm over pay to their executives. According to governance advisors Pirc, Tesco's top management team would receive five times their salary if removed from their positions. This includes Sir Terry Leahy who last year earned a staggering £2.8 million.
While the group is currently in favour with investors for hitting its performance targets, shareholder concerns about contract terms have come to the foreground as the government plans to launch a three-month consultation on ending potential 'rewards for failure'.
Even though few shareholders are demanding or expecting that executives to be ousted for poor performance on Tesco, they seem to be taking a stand against two-year contracts at many companies.