Unformatted text preview: are changing their approach to paying top managers in the industry. This comes as a result of the shareholders not being happy with the performance of Tesco posting an operation loss of £165 million in its U.S. branch and the chief executive, Tim Mason, receiving a multi-million pound performance payout. With lowering the base salary, the top managers will have to work towards a better work performance year if they plan on making the making up to difference (a 23% cut in base salary for the Chief Executive). The CEO will be required to hold shares of the company valuing four times his salary, while the executive director will be required to hold three times the value of his salary. This most certainly aligns the top manager’s incentives with the shareholders because both will profit from increasing the value of the company/shares....
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- Spring '11
- Management, Tesco PLC, Cuts CEO Salary, Executive Compensation/Base Salary