Two Tesco execs receive three million pounds in damages

Two Tesco executives have received almost three million pounds in liquidation damages after leaving the UK supermarket chain.

Former UK chief Richard Brasher was handed £1.3m and Tim Mason, head of the now defunct US venture Fresh & Easy, was given £1.6m, the Daily Mail reported.

The payments come at the height the retailer's troubles. Last month the company reported its first annual profit fall for the first time in two decades.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Chief Executive Officer, Phil Clarke, said the drop in profits were a result of a £1.0bn restructuring plan which was launched after the supermarket issued a profit warning in January 2012.

Clarke and his top team missed out on their annual bonuses this year to compensate for the disappointing results.

The chief's pay package remained unchanged from the previous year at £1.1m while Finance Director Laurie Mcllwee's pay fell from £1.1m to £0.91m.

Store workers, including shelf stackers and check-out employees, also saw their pay-outs fall from £110m to £56m, the equivalent of £1,625 per worker.

RD