UK

Tesco Urged Not To Let Philip Clarke Leave With £21 Million Package

24/07/2014 13:02 BST | Updated 24/07/2014 15:59 BST
SAJJAD HUSSAIN via Getty Images
Information Technology Director of British retailer Tesco Philip Clarke addresses a press conference in Mumbai on August 12, 2008.Tesco, the biggest British retailer, said that it plans to open wholesale grocery stores in India that will supply goods to hypermarkets owned by Indian conglomerate Tata Group. Tesco said it would invest up to 60 million pounds (114 million USD) over two years to help develop its wholesale business. Tesco will also enter into an exclusive franchise agreement with Trent, the retail arm of Tata Group, which will in turn pay a fee to Tesco in return for retail and technical support. Trent aims to expand its number of Star Bazaar hypermarkets to 50 from four presently, by 2013. Trent shares rose 49.6 rupees or 9.99 percent to 545.85 at the Bombay Stock Exchange. AFP PHOTO/Sajjad HUSSAIN (Photo credit should read SAJJAD HUSSAIN/AFP/Getty Images)

Tesco has come under pressure by its shareholders to stop chief executive Philip Clarke potentially walking away with £21 million, after he announced he was quitting in October following the supermarket suffering its worst sales in four decades.

“People get paid for delivery, not for not delivering," one major Tesco investor complained, according to the Telegraph.

Clarke is estimated to be getting a leaving package worth up to £10 million, being paid his £1.17 million-a-year salary for a six month "transition" period and a further year's worth of salary on departure.

Accounting for the amount Clarke has accumulated in pensions and shares over 40 years of service at the supermarket giant, the retail boss could potentially walk away with £21 million altogether.

See also:

Tesco Shareholders Slam Bosses' 'Madness' Amid Declining Fortunes

Sainsbury's Sales Fall Again, But By Less Than Rival Supermarket Tesco

Tesco Supermarket Suffers Credit Downgrade After 'Weak' Sales

Ex-Tesco Chief Sir Terry Leahy 'Disappointed' With Supermarket's Decline

Clarke will be replaced by Unilever executive Dave Lewis. Lewis will get a basic salary of £1.25 million and standard benefits, receiving a further £525,000 in lieu of his current year cash bonus from Unilever, Tesco said in a statement.

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