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

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 Tre
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 Tre
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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.

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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