Tesco chief executive turns down bonus Undated handout photo of Tesco chief executive Philip Clarke, has spurned his annual bonus worth £372,000. Photograph: Tesco/PA Tesco boss Philip Clarke has turned down his annual bonus worth nearly £400,000 after disappointing sales at the UK chain sparked the supermarket's first profit warning in 20 years. Its top 5,000 managers received an annual cash bonus worth just 17% the maximum while executive directors got 13.5%, reflecting that "some performance targets in the UK were not met," according to the retailer's annual report. Although the grocer made "record" group profits of £3.8bn in the year to 25 February, the success of its international business masked a 1% fall in UK profits to £2.5bn. The Tesco board has traditionally been one of the best paid in the FTSE but remuneration committee chairman Stuart Chambers said the profitability threshold for the annual bonus - which accounts for 70% of the possible award - had not been achieved, triggering a substantial reduction in pay for the company's top directors. This meant that the pay of all bar one of the executive directors - US head and deputy chief executive Tim Mason - fell below £2m. Directors received 46.5% of long term awards tied to earnings and return on capital invested, according to the report. Tesco said Clarke, who still took home in the region of £1.7m, had "decided earlier this year" not to take his 2012 annual bonus which was worth £372,000 due to the "weaker than expected performance in the UK." In the report Clarke admits it "has been a tough year to be a Tesco shareholder." "Whilst the year gave us many things to be proud of, overall it was not the most pleasing performance," he said, adding. My team and I are resolved to get Tesco back to winning, particularly at home. Last year Tesco overhauled its pay policy for top executives after an embarrassing shareholder revolt at its 2010 annual meeting, when almost half its investors failed to back its remuneration report. The new "collegiate" approach saw Tesco's current four long-term incentive plans merged into one single plan. The shakeup also involved scrapping a controversial incentive scheme previously enjoyed by Mason. Clarke earned less than Mason, who runs loss-making US start-up Fresh & Easy and took home a pay and shares package worth £2.1m, half the previous year's haul. California's based Mason's pay was boosted by a benefits package worth £555,000. The four-year-old US chain made a loss of £153m on sales of £638m. The annual report shows Richard Brasher, who was ousted as UK head in March, earned roughly £1.6m last year. Brasher, who had worked at Tesco for 25 years, owns shares worth nearly £5m. Details of his pay off will appear in next year's annual report. Shopfloor staff will share £110m from the all-employee cash bonus scheme which vests in 2015. All staff can participate in the plan but payouts for directors are capped at £3,000.