News

While Tesco management has become accustomed to use the AGM as an opportunity to parade its achievement and bask in its success media this year reports that investors present voted heavily against management own proposal to improve its right to sell stock options from one year to three years. More than 40 % of the voters believed that mangement's suggestion was out of line as the incitement to run the business well would be diminished. The independent investment advicer RiskMetrics adviced against adopting the proposal and in the end a narrow a 55 % backed the proposal which has been called the biggest revolt against a company's managment since 1996.



Media also reported that Tesco faced big oppostion from the union Unite which had fielded a resolution demanding Tesco to make sure workers at suplliers' meat producing plants would have decent working conditions. This resolution was backed by the West Yorkshire Pension Fund and received solid backing from 11 % of the AGM a result that Tesco management is satisfied with, claiming Tesco has no responsibility towards the supply chain and according to David Reid, Tesco chairman: "We do not own or control these companies. Your desire to recruit in the meat industry is a matter for you."



For more on this and the full articles:



http://www.ft.com/cms/s/0/aff8862a-6831-11de-848a-00144feabdc0.html

http://www.dailymail.co.uk/money/article-1197389/Tesco-revolt-sets-scene-upcoming-M-S-AGM-clash.html

http://online.wsj.com/article/BT-CO-20090703-705537.html

http://business.timesonline.co.uk/tol/business/industry_sectors/retailing/article6630831.ece

http://www.easybourse.com/bourse-actualite/marches/tesco-agm-passes-executive-share-option-change-by-55prc-696105