Tesco Managers To Get No Bonuses Unless Profit Plunge Is Reversed

As Britain's largest supermarket chain saw its profits plunge this year—the first time such a thing has happened in two decades—panic kicked in, and all manager bonuses kicked out. "Our financial performance fell short of where we wanted it to be," Stuart Chambers, chairman of Tesco's remuneration committee, said in the chain's annual report, published Thursday (May 23). In the future, and in accordance with new guidelines, bonuses will be paid only if profit has grown. To reflect Tesco's "fundamentally different approach to space going forward," the company said in the report it will base future pay awards on trading profit rather than so-called underlying profit, as the former doesn't include property gains. Story