CtW Investment Group, which works with union-sponsored pension funds, has written to Sir Richard Broadbent, Tesco's incoming chairman, calling for a review of the company's US-based Fresh & Easy Neighborhood Market chain, according to published reports.CtW asked Broadbent to lead the board "in an objective and independent review of Tesco's Fresh & Easy operations and to publicly articulate a strategy to deliver on the company's repeated promise that Fresh & Easy will break even by 2013," the Financial Times of London reported Wednesday. CtW also questioned the salary of Tim Mason, chief executive officer of Fresh & Easy, noting it is no longer linked to the chain's performance.
Tesco issued a statement that said, "We have not seen this letter, and it is regrettable but entirely typical that CtW - a U.S. union-sponsored body that is not a shareholder, does not speak for shareholders and has tried to undermine the success of Fresh & Easy from the outset - should choose to use the media to promote its hostile and unsubstantiated claims."
CtW said it did own Tesco shares through union-sponsored pension funds and would attend Friday's annual meeting.
Source: SupermarketNews
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