Tesco employees benefit from top to bottom after turnaround wins back customers
Tesco chief executive Dave Lewis was paid £4.6 million in 2015, a year he called one of “significant progress” in the supermarket giant’s annual report.
The company also confirmed that its 300,000 employees will be awarded a one-off “turnaround bonus”, amounting to 5 per cent of salary.
Mr Lewis received a £3m bonus for returning Tesco to profit after its £6.4 billion loss in 2014. Group sales at Tesco, excluding fuel, for the year topped £48.4 billion, with the company posting an operating profit of £162m, a year after recording the worst loss in UK high street history after booking £7bn of impairment charges.
Mr Lewis was paid a salary of £1.25m and received a short term bonus of £2.99m. Also included in his package was £80,000 in benefits and £313,000 in pension contributions. Finance chief Alan Stewart was awarded a total package of £2.6m, including a £1.6m bonus.
Mr Lewis and Mr Stewart, received 97.5 per cent of the maximum bonuses after meeting almost all financial and personal targets set. Instead of the standard 50 per cent of these bonuses being deferred into shares, both directors offered to defer a further 50 per cent as a “demonstration of their commitment to turning around the business”. The shares will vest in 2018, or earlier, in the event of dividend payments resuming.
Mr Lewis and Mr Stewart will not receive a rise in their basic pay this year. In the report, Mr Lewis wrote that the business was on the road to recovery and momentum was building. “This has been a significant year for Tesco,” he wrote. “We have taken decisive, immediate action on the challenges we faced.”