Tesco Boss Philip Clarke Turns Down Bonus After Dismal Results

Tesco Boss Turns Down Bonus After Dismal Annual Results

Supermarket boss Philip Clarke took responsibility for Tesco's dismal UK trading today by spurning his annual bonus worth £372,000.

Clarke, who receives an annual salary of £1.1m, was in line to pick up 13.54% of the maximum possible payout but said he decided earlier this year that he would not be accepting an award.

He said: "I wasn't satisfied with the performance in the UK and I won't take the bonus. I'm confident that we're tackling the right issues and building a better Tesco for customers, colleagues, shareholders."

Tesco confirmed that 5,000 managers saw their bonuses slashed to 16.9% of the maximum payable but that an estimated 225,000 staff will share a bonus pot of more than £110m for the last year. The cash bonus, which will be paid in 2015, is likely to be worth 3.6% of earnings for each eligible member of staff.

In the last five years, Tesco has awarded more than £500m in the employee bonus scheme.

Clarke's decision to sacrifice his bonus follows a 1% decline in UK profits to £2.5bn for the year to February 25.

Its £500m Big Price Drop campaign failed to impress customers and there has been criticism that Tesco's stores were in need of improvement in terms of appearance and staffing levels.

Clarke, who has now taken overall responsibility for the UK business, has pledged to slow new shop openings and shift the focus on to upgrading existing stores.

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