Tesco CEO Philip Clarke opts to decline his annual bonus as company fails to reach some performance targets; bonuses of other executives, managers reduced

CHESHUNT, England , May 22, 2012 (press release) – Tesco employees in the UK are set to share more than £110m as a reward for their hard work and dedication. The award is a big thank you for the commitment of our staff as they work to build a better Tesco in the UK. In the last five years Tesco has awarded more than £500m in the all-employee bonus schemes, which are part of Tesco’s industry-leading pay and benefits package.

Tesco CEO Philip Clarke said: “The Tesco team has worked harder than ever in the last year and shown real loyalty and commitment. It has been a challenging year for everyone and it would have been harder still had it not been for the determination of the team. This award is our way of saying thank you for what they continue to do best – delivering for our customers.”

The news comes as Tesco publishes its latest Annual Report which details progress in key areas for the business, including:

Record group profits and sales
Breaking through the 500,000 employees mark for the first time, making Tesco one of the largest global employers
The launch of a six part plan to build a Better Tesco in the UK
Our multichannel Clicks and Bricks strategy
Progress in our international markets, generating £1.1bn of profit
Building Tesco Bank

In spite of record Group profits and sales, some performance targets in the UK were not met. Consequently Tesco’s top 5000 managers will receive a reduced annual bonus of 16.9% of the maximum payable under their bonus scheme. Executive Directors will receive 13.54% of the maximum. CEO Philip Clarke decided earlier this year not to take his 2012 annual bonus, given the weaker than expected performance in the UK.

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