Tesco AGM attracts significant shareholder fury

While the underlying profits at Tesco continue to rise and the company continues to spread its wings into more and more markets, today's AGM was anything but an easy ride for the directors. Aside from the fact that unions had complained about the treatment of migrant workers at the company's meat suppliers there was a serious backlash against plans to extend a share option scheme.



Initially the director share option scheme was for a 12 month period during which time the directors would be rewarded if the share price reached a predetermined level. However, as it became apparent that the UK stock market and other stock markets around the world are still relatively volatile, the company has now pushed through plans to increase the period in question from 12 months to 36 months. This will give directors the opportunity of substantial rewards over a three-year period, during which time it seems highly likely that the UK stock market will recover.



This is not the first time that a director related share scheme has attracted the attention of investors, both individuals and institutions, with accusations that some of the targets in question are not taxing to say the least.