* Rejects independent review of Fresh & Easy
Tesco , the world's No. 3 retailer, has won over shareholders with a simpler and long-term focused executive pay scheme following years of disputes over how it rewards management.
Some 97.2% of voting shareholders backed the new pay plan at the British supermarket group's annual general meeting in Nottingham, central England, on Friday.
At the meeting, picketed by around 50 pig farmers calling for better prices, Chairman David Reid rejected a call from a U.S. shareholder advisory group to conduct an independent review of Tesco's loss-making U.S. business Fresh & Easy.
Chief Executive Phil Clarke also joined rivals in warning trading conditions were tough in Britain, where the group makes about two-thirds of sales and profits and where consumers are being hit by rising prices and swingeing government cutbacks.
Tesco, which lags France's Carrefour and U.S. industry leader Wal-Mart in annual sales, announced in May a new executive pay plan, which includes a lower level of basic pay for Clarke than long-serving predecessor Terry Leahy.
Last year over 40% of shareholders either opposed or abstained in a vote over management pay.
Clarke said Tesco was making progress at Fresh & Easy.
"We're getting more customers through the door, and they're spending more with us," he said, adding he had visited the chain four times this year and taken the whole board to see it in March.
CTW Investment Group, which advises U.S. union-sponsored pension funds, urged Tesco at the AGM to launch an independent review of Fresh and Easy after years of heavy losses.
Clarke reiterated he was aiming for Fresh and Easy to reduce its losses significantly this year and break into profit towards the end of the 2012-3 financial year.
He also said he was pleased with the progress being made at improving the group's performance in Britain and rejected suggestions it was running out of room to grow there.
"The UK grocery market may be mature, but it's still far from saturated," he said, adding that Britain had the lowest level of grocery selling space per capita in the European Union.
