The chief executive of leading UK supermarket chain Tesco has agreed to switch to a one-year rolling contract amid pressure from shareholders.
Sir Terry Leahy had been on a two-year contract but a proposal to adopt a one-year contract has been sent to leading shareholders and investor lobby groups, reported the Financial Times.
Last year some shareholders protested at the annual meeting about Leahy’s contract, which would enable him to receive twice his annual salary if he lost his job, even if the chain performs poorly.
“Our thinking has evolved and we have listened to shareholders. Terry Leahy had signalled his intentions on this issue and the remuneration committee always seeks to adopt current best practice,” a Tesco spokesman was quoted by the Financial Times as saying.