Tesco defended the pay for its senior staff, pointing out that the 4pc rise in total board pay was well below a 10pc increase in annual 'underlying' profits to £3.4bn over the year.  Nevertheless David Reid, chairman of Tesco, plans to meet with major investors in the coming weeks to discuss any grievances.  "Pay for senior people is a hot topic at the moment and a number of companies have faced similar votes. Clearly some shareholders are concerned about certain aspects of our pay structures and we will listen to that and engage with those shareholders going forward," said a Tesco spokesman  Much of the criticism at the meeting centred on a 12pc increase awarded to Tim Mason, chief executive of Tesco's loss-making US business Fresh & Easy. Mr Mason earned a total pay and bonus package of £4.2m.  Despite the protest Mr Mason and other executives were all re-elected to the board with majorities in excess of 90pc.  Last month three of Prudential's biggest investors heaped more woe on the embattled company by voting against the insurer's remuneration report in the wake of its failed bid for AIA. The investors objected to "golden hello" deals handed to Nic Nicandrou, finance director, and Rob Devey, head of Prudential's UK business, who both joined the company last year.  In May Stephen Green, HSBC's chairman announced a review of the bank's pay policies after nearly one in four shareholders either voted against the remuneration report, or abstained, amid concerns over the relocation package of £800,000 given to chief executive Michael Geoghegan when he moved to Hong Kong in January.  Marks & Spencer is expected to face a similar protest vote at its annual meeting later this month. The Association of British Insurers has issued an "amber top" warning following a £7.5m "golden hello" for Marc Bolland, the new chief executive.  Sir Terry – who announced last month that he plans to stand down next year after 14 years running Tesco – was given a standing ovation after Mr Reid thanked him for his hard work.  Tesco mounted a vigorous defence of its accounting policies at the meeting, following a claim by Citigroup analysts that 2009-10 profits would have been about £800m lower if it had used policies comparable to its main rivals.
Investors fired a warning shot across the bows of the Tesco board on Friday &ndash;    with 32pc voting against the retailer's remuneration report at the group's    annual general meeting.