The former boss of Tesco's failed US chain Fresh & Easy has received a £1.7m payoff despite the business being shut down after repeated losses.
Tim Mason, who departed in December after 30 years at the group, was awarded "liquidation damages" equivalent to his annual salary plus a sum equal to his average bonus over the past two years.
Tesco announced last month it would exit the US after racking up total costs of £1.5bn. Fresh & Easy opened in 2007 but never made a profit.
Tesco's checkout staff, meanwhile, learned that their annual shares bonus pot has been halved after the retailer's first fall in annual profits in almost 20 years. Around 280,000 UK staff will receive a total of £56m in shares, down from £110m a year earlier and worth a maximum per worker of £1,625.
On top of his payment for "loss of office", Mason also earned a £691,000 salary and received £400,000 in benefits last year. He had built up a £10.4m pension, and owns more than 1m shares, worth around £4.1m. He also has options on a further 1.15m shares, and will be paid £100,000 in "repatriation costs" to return to the UK.
Tesco bosses will only receive an annual bonus in the future if profits grow. The retailer also said, however, that future bonuses would be less focused on short-term profits than in the past, and more focused on other "strategic and operational" measures, including customer service and colleague "engagement".
In terms of financial measures, the level of bonuses will be determined by internet sales, like-for-like sales, and working capital as well as profits.
Richard Brasher, the former head of Tesco's UK business, who was squeezed out in March 2012 after just a year in the job, also received a golden goodbye. He was paid "liquidated damages" of £1.3m.
