Tesco may bow to shareholder pressure and change the contracts of its top executives, following a surprise 'fat cat' protest vote by investors at their annual meeting.
The supermarket group has been under pressure to switch directors from their current two-year contracts to one-year terms. Tesco's remuneration report was passed at their annual general meeting but 40 per cent of shareholders voted against it or abstained.
The protest was the third biggest at a large company's agm this year behind Glaxo Smith Kline (63 per cent against) and BAE Systems (49 per cent against) The group has confirmed that although it has no plans to change the existing two-year contracts the subject was undergoing a review.
Tesco director John Gardiner said: 'We have received a great many communications from shareholders in recent weeks. We will look at the issue of 2-year contracts again this year and very carefully.'