Tesco under fire over CEO’s £10m pay as Elon Musk celebrates $45bn deal approval – business live | Business

Return to Tescoit also reported a jump in sales this morning.

In its financial results for the first quarter of the financial year, Tesco said comparable UK sales rose 4.6% in the three months to 26 May.

Tesco says it is growing its UK market share faster than all of its “key competitors”, with food sales up 5% in the quarter.

CEO Ken Murphy (he of the controversial £10m pay packet) says:

“We continued to gain momentum in the business with strong volume growth in the UK, Republic of Ireland and Central Europe, supported by lower inflation.

We continue to be the lowest priced full grocery store and are the most competitive we have ever been with our value, product quality and service leading to better brand perception and customer satisfaction

Not all Tesla however, shareholders will share Musk’s jubilation.

Some, including Norway’s $1.6 trillion sovereign wealth fund and California pension fund CalPERS, said they would vote against the pay deal.

And an impact fund Tulipshare is disappointed that its proposal to tie CEO Elon Musk’s compensation to ESG performance was not adopted.

Antoine Arguge, CEO and founder of Tulipsharesays it is “deeply concerned” that Musk’s pay deal has been re-approved.

“Once again, Tesla chose to sidestep shareholder concerns at this year’s general meeting (AGM). Although Tulipshare did not secure majority shareholder support for our proposal to link CEO Elon Musk’s pay package to the company’s environmental, social and governance (ESG) performance, we remain committed to our commitment to Tesla.

“As a shareholder, I am deeply concerned that Musk’s compensation package has been restored. I see this move as short-sighted and one that will have disastrous consequences for Tesla’s future. It is imperative to the company’s longevity that Musk’s compensation be tied not only to financial performance metrics, but also to ESG metrics, as our resolution suggests. Tesla’s future cannot rest solely on Musk’s erratic behavior and decision-making; safeguards must be in place to ensure the company’s long-term financial stability and sustainability efforts. Musk should not be rewarded for declining profits. Tesla’s situation has changed since 2018, and the CEO’s compensation package should reflect that.

“Tesla’s poor handling of environmental, social and governance issues has drawn notable criticism in recent years. In 2021, the National Labor Relations Board revealed that Tesla violated federal labor laws by termination of union activist. Dozens of workers have also sued the company, alleging that Tesla allows a culture of racism and sexual harassment. In addition, Tesla is fighting accusations of child labor in supply chains for years, as well as allegedly unlawfully hazardous waste treatment, poor right-to-repair policies and his inability to develop a low carbon strategy.

Elon Musk is in jubilant mood after winning a victory last night over his pay deal, which is currently valued at around $46 billion.

After shareholders reapproved the mega package, Musk posted a photo of a cake with the words “Vox Populi, Vox Dei” and a heart.

Tesla’s CEO says he’s sending it to Delaware — where a judge had blocked the payout in January, prompting a new vote Thursday to approve it (again).

The voice of the people may be the voice of God, but whether the Almighty would approve a nearly $50 billion pay deal is another matter entirely.

Musk welcomed his shareholders last night, telling a crowd of investors at Tesla’s factory in Austin, Texas:

“We have the greatest shareholder base. Hot damn I love you guys.

Investors also approved a second resolution to reincorporate the Texas-based electric vehicle maker.

Back in January, a Delaware judge ruled that Tesla’s board could not be considered independent of Musk’s influence and that the process for drawing up the pay package was illegitimate.

Last night’s vote could serve as a rebuttal to the judge’s ruling that overturned the award — making it easier for Tesla’s board to argue that shareholders were properly informed about the pay package and board members’ ties to Musk before they voted.

Good morning and welcome to our ongoing coverage of business, financial markets and the global economy.

Paid packages are in the spotlight today.

While Elon musk celebrates Tesla shareholders vote to approve his multibillion-dollar pay packageBritish supermarket chain Tesco will face criticism over its chief executive’s pay deal today.

Tesco must justify Ken Murphy A £10m pay packet at the AGM later today, with responsible investment NGO ShareAction planning to question why Murphy’s pay should be doubled when his supermarket staff are poorly paid.

Although workers in Tesco stores are voluntarily paid the real wage (which is higher than the minimum wage), ShareAction says contract staff – such as cleaners and security – do not

Dan HowardHead of good work in ShareActionexplains:

“In a world where Tesco makes a profit of £2.3 billion a year, paying the real living wage to those who keep stores safe and clean should not be asked for – it should be automatic.

“Unfortunately, Tesco has been slow to take the right steps to pay third-party staff the living wage.

“Failure to recognize the financial difficulties faced by many of those who work for Tesco during the cost of living crisis will damage Tesco’s reputation with both shareholders and customers.”

Last month we learned that Murphy’s salary had swelled from under £5m to £10m due to bonus payments.

It means Murphy now earns more than 430 times the average wage at Tesco, up from a multiple of 197 the previous year.

The payout was blasted by the Unite union in May; they called it a “slap in the face” for millions of struggling households who were paying for it through higher food bills.

ShareAction is calling for major supermarkets, including Tesco, to be accredited as living wage employers, which would mean all staff, including third party contractors, would be guaranteed a consistent real wage, and to set a timetable for this.

Tesco will face questions about Murphy’s pay and other aspects of the business at its AGM, which starts at 11.30am at its Welwyn Garden City campus.

The agenda