Tesco (LON:TSCO) has come under fire by shareholder advisory body PIRC over its executive pay, City A.M. reports. The news comes ahead of the blue-chip supermarket’s annual general meeting (AGM) on Friday when the company is also set to update investors on its first-quarter performance.
Tesco’s share price has been little changed in today’s session, having inched 0.04 percent lower to 249.40p as of 10:26 BST. The stock is marginally underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.17 percent higher at 7,717.26 points. The group’s shares have added more than 34 percent to their value over the past year, as compared with about a 2.9-percent gain in the Footsie.
Tesco slammed over exec pay
City A.M. reported last night that PIRC was recommending that investors vote down Tesco’s remuneration report, pointing to chief executive Dave Lewis’ pay package. Britain’s biggest supermarket is scheduled to hold its AGM on Friday.
“The salary of the CEO is considered to be the highest when compared to salaries of other CEOs in the peer group,” the shareholder advisory group pointed out, as quoted by the newswire.
The supermarket’s boss took home £4.87 million for the last financial year, including a base salary of £1.25 million, as well as a £2.28-million short-term bonus, £971,000 in shares from a long-term incentive plan, along with additional benefits and pension contributions.
Analysts on blue-chip grocer
The 16 analysts offering 12-month price targets for Tesco for the Financial Times have a median target of 265.00p on the shares, with a high estimate of 300.00p and a low estimate of 200.00p. As of June 8, the consensus forecast amongst 22 polled investment analysts covering the blue-chip group has it that the company will outperform the market.