Wednesday 13 December 2017

Tesco boss in line for €3.7m bonus after supermarket returns to the black

Dave Lewis, Group Chief Executive of Tesco. Photo: Reuters
Dave Lewis, Group Chief Executive of Tesco. Photo: Reuters

Tesco chief executive Dave Lewis has been awarded an annual bonus of £2.9m (€3.7m), taking his total pay for the year to £4.6m.

The figures, revealed in the supermarket's annual report, also show that the supermarket's chief financial officer, Alan Stewart, pocketed £2.5m, which includes a bonus of £1.6m.

Tesco's remuneration report said the payouts were awarded after "financial targets for sales and operating profit ... were met almost fully".

Tesco swung back into the black in February, notching up a pre-tax profit of £162m compared with a £6.4bn loss a year earlier.

Mr Lewis said the grocer had made "significant progress" since last year, adding: "We have taken decisive, immediate action on the challenges we faced. In a very deliberate way we have made the changes needed to re-energise the operation.

"We have stabilised the business and we are on track with where we expected to be."

Mr Lewis has been hailed for turning the ailing giant around after the disastrous reign of his predecessor, Philip Clarke, which saw profits slide, market share eroded and an accounting scandal dog the firm.

Mr Lewis joined Tesco in 2014 from Unilever and has moved to make the company more competitive in the midst of a bitter supermarket price war and the rise of German rivals Aldi and Lidl.

The company also confirmed that its 300,000 employees will be awarded a one-off "turnaround bonus", amounting to 5pc of salary.

Press Association

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