Tesco CEO Turns Down Bonus
You would think on the heels of Tesco’s decision to cut performance bonuses for its store managers, there really wasn’t anything else the chain’s CEO could do but turn down his own. But the relative rarity of top executives doing the right thing has made Philip Clarke’s decision to pass on $587,000 a big news item.
"I decided at the beginning of the year that I would decline my annual bonus for 2012," Mr. Clarke said in a statement. "I wasn’t satisfied with the performance in the U.K. and I won’t take the bonus. I’m confident that we’re tackling the right issues."
Mr. Clarke’s decision has no bearing on his annual salary or other financial benefits that are part of his package. According to Reuters, Mr. Clarke is paid "a basic salary of over 1 million pounds" and was awarded share options worth 2.7 million pounds.
- Tesco Managers Brooding Over Teeny Bonuses – RetailWire
- Every little helps: Tesco boss Philip Clarke rejects £370,000 annual bonus – Mirror Online
- Tesco chief executive turns down bonus – The Guardian
- Tesco’s Philip Clarke has done the right thing – The Guardian
- Tesco CEO turns down $590,000 bonus – Reuters
Discussion Question: Do you agree with Tesco CEO Philip Clarke’s decision to turn down his annual bonus? Do you think public decisions such as that of Mr. Clarke will spur a wave of similar acts by other CEOs?