Home Retail Tesco Should Conduct Review of Fresh & Easy, CTW Says

    Tesco Should Conduct Review of Fresh & Easy, CTW Says

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    Plc’s incoming chairman Richard Broadbent should conduct a strategic review of its unprofitable U.S. chain , a pension advisory firm said.

    Tesco to cut another 1,200 jobs to adjust increasing cost pressure
    Tesco chief executive Dave Lewis has been hailed for leading a turnaround of the supermarket since taking the helm in 2014

    Tesco, the U.K.’s largest grocer, needs to outline a for profitability at the unit, CTW Investment Group, which advises U.S. union-sponsored pension funds with more than $200 billion in assets, said in a statement today.

    The Washington-based group said Broadbent, who takes over as chairman from David Reid on Nov. 30, should undertake the review because the existing approach is “notably unsuccessful.” The firm also said changes made to Tesco’s executive compensation policy meant that it no longer links the pay of U.S. Chief Executive Officer to the “performance of the U.S. business in any meaningful way.”

    A spokesman for Cheshunt, England-based Tesco, said CTW is not a shareholder, and doesn’t speak for them.

    Source : Bloomberg