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LONDON -- Terry Leahy, chief executive of British retailer Tesco, operator of Fresh & Easy stores in the United States, took a $608,000 cut in his pay and bonus package for 2008, according to Datamonitor report.
Leahy reportedly took the pay cut after Tesco's Fresh & Easy business did not achieve targets. For the year to Feb. 28, 2009, Leahy's salary, benefits and performance-related package was $8.39 million (GBP 5.10 million), compared to more than $9 million (GBP 5.47 million) the year before.
As part of his long-term bonus plan, Leahy is entitled to 50 percent of his salary in deferred shares if Tesco achieves aggressive objectives relating to establishing Fresh & Easy. Leahy has received only 45 percent of the maximum payout.
The London Telegraph quoted Leahy saying, "Clearly nobody would have chosen to open into the scale of recession that we've seen there, which is particularly stiff in the western U.S., but the customers love the stores and they appeal right across the income range and the age range, and that bodes very well for their long-term appeal."
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