Tesco CEO Lewis Said to Receive a Bonus of Almost $4.3 Millionby
Tesco Plc has awarded Chief Executive Officer Dave Lewis an annual bonus of nearly 3 million pounds ($4.3 million), according to a person familiar with the matter.
The payout, to be revealed in the company’s annual report Friday, will mean Lewis pockets slightly less than his maximum entitlement of 3.13 million pounds. Tesco’s 265,000 U.K. employees are also set to share a so-called “turnaround bonus” of 185 million pounds, equivalent to about 5 percent of each staffer’s salary, said the person, who asked not to be identified as the information is yet to be disclosed.
Lewis’s pay package comes after a year in which growth remained elusive for Tesco, although U.K. same-store sales rose in the fourth quarter for the first time in several years. A growing number of compensation packages for U.K. CEOs are attracting the ire of investors. In April, almost 60 percent of investors shot down payouts at BP Plc, while Reckitt Benckiser Group Plc shareholders also lodged a protest vote.
A Tesco representative declined to comment.
Last year, Tesco increased the proportion of executive bonuses that are directly linked to sales growth to 50 percent from 18 percent. The new policy aimed to move management away from practices that led to the company overstating its profit by 326 million pounds in 2014. Lewis’s basic salary in 2015 was 1.25 million pounds.
Sky News earlier reported on the bonus payout.