Buxton and team review governance after 'inappropriate' Tesco pay-offs

Old Mutual Global Investors has reviewed its governance and voting policies in a bid to end UK executive pay-offs that it says are "a reward for failure".

The move follows Tesco's announcement that its former chief executive and chief financial officer, Phil Clarke and Laurie McIlwee, would receive termination payouts of £1.2m and £970k respectively, as a result of their 12-month notice periods. Paul Emerton, head of UK stewardship and governance at Old Mutual Global Investors, said: "The performance of Tesco over recent years, combined with the investigation regarding accounting revealed last year, make a total payment of more than £2m inappropriate and show 12-month contracts to be an anachronism." As a result, Old Mutual has changed ...