Tesco Plc’s incoming chairman Richard Broadbent should conduct a strategic review of its unprofitable U.S. chain Fresh & Easy, a pension advisory firm said.
Tesco, the U.K.’s largest grocer, needs to outline a strategy 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 Tim Mason 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