Former CEO Tim Mason of Tesco's US chain Fresh & Easy has been given £1.7 million, the equivalent of nearly 2.57 million USD, in the form of "liquidation damages" equivalent to his annual salary plus a sum equal to his average bonus during the past two years, according to The Guardian.
In December, Mason left the group after investing 30 years with the company.
In April, after a strategic review of Fresh & Easy, including the indications of interest received from third parties, Tesco confirmed that the outcome of the review would be an exit from the United States. Along with the news about the future of the Fresh & Easy chain, Tesco also release its worst financial performance in its history. Full year pre-tax profits had more than halved, on the heels of its decision to exit the U.S. and UK-driven profit warnings last year, which spurred $3.66 billion in writedowns.
The report from The Guardian also stated that Tesco's checkout staff had learned that their annual shares bonus pot has been halved after the retailer's first fall in annual profits in almost 20 years.
Mason also earned a £691,000 salary and received £400,000 in benefits last year on top of his award for liquidation damages. He will be paid £100,000 in "repatriation costs" to return to the UK, the publication notes.
