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Lower bonus pushes Tesco CEO's pay down by 10.5 pct
May 12, 2017 / 10:59 AM / 7 months ago

Lower bonus pushes Tesco CEO's pay down by 10.5 pct

LONDON, May 12 (Reuters) - The chief executive of Tesco , Dave Lewis, saw his total pay package fall 10.5 percent last year, even though the supermarket group achieved a 25 percent rise in profit and its first full year of sales growth for seven years.

Lewis made 4.15 million pounds ($5.3 million) in its 2016-17 financial year, down from 4.63 million pounds in 2015-16, according to the annual report from Britain’s biggest retailer, published on Friday.

The reduction reflected a 21 percent fall in his short term bonus to 2.36 million pounds, with 75.6 percent of the maximum paid versus nearly the full amount in the previous year.

His salary was maintained at 1.25 million pounds and has not been raised for 2017-18. The bonus is based on profit, revenue and a number of personal targets.

After Tesco’s sales, profit and asset values were hammered by changing shopping habits, the rise of German discounters Aldi and Lidl and an accounting scandal, the firm has been fighting back under Lewis, who joined the firm in September 2014.

Last month Tesco beat forecasts for annual profit as its recovery gained pace, potentially strengthening the hand of Lewis as he seeks investor backing for his plan to buy wholesaler Booker.

“Tesco has had a year of strong progress, delivering against the three turnaround priorities of improving competitiveness in the UK, a more secure balance sheet and rebuilding trust, which were set in 2014,” said Deanna Oppenheimer, chair of Tesco’s pay committee.

Tesco’s Chief Financial Officer Alan Stewart received a total pay package of 2.24 million pounds, down 14 percent.

Shares in Tesco, up 15 percent over the last year, were down 0.9 percent at 178.75 pence at 1029 GMT. ($1 = 0.7778 pounds) (Reporting by James Davey; Editing by Keith Weir)

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