TESCO chief executive Philip Clarke and finance director Laurie McIlwee both missed out on bonuses last year after the firm failed to meet its profit targets.
The supermarket group, which last year suffered its first profit fall in two decades after it withdrew from the US and wrote off £2.3bn, said in its annual report that no executive directors received bonuses due to the poor performance.
Clarke and McIlwee still received base salaries of £1.13m and £869,000 respectively.
Some 5,000 top managers in the business will also not get an annual bonus, according to the report.
However, the austerity measures did not affect the size of the golden goodbyes for those leaving the group. Richard Brasher, the former head of Tesco’s UK business, who left in March 2012 after just a year in the job, was paid £1.3m for loss of office. And Tim Mason, who led the company’s US arm Fresh & Easy, collected £1.7m in “liquidated damages”.
The company’s financial performance “fell short of where we wanted it to be,” said Stuart Chambers, chairman of Tesco’s remuneration committee.