Tesco Chief Executive Lewis Sees 10% Drop In Annual Pay Packet

By Steve Wynne-Jones
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Tesco Chief Executive Lewis Sees 10% Drop In Annual Pay Packet

Tesco's chief executive, Dave Lewis, earned a overall annual pay packet of £4.6 million in 2018/19, according to the retailer's annual report, published today (14 May).

Lewis' base salary for the period was £1.25 million, with the CEO also earning a £1.64 million bonus, £1.34 million through share plans, £313,000 in pension earnings and £61,000 in benefits.

However, Lewis' total pay was 10% lower than the previous year, in which the former Unilever executive earned a total of £5.11 million, boosted by a higher full-year bonus.

Lewis' pay is still significantly lower than that of former chief executive Sir Terry Leahy, who earned £7.15 million in his last year at the helm (2010/11). Leahy's successor, Philip Clarke, earned £4.6 million in his first year as CEO of Tesco (2011/12), but his salary was significantly reduced in the years that followed.

Lewis' first full year as chief executive was in 2015/16.


CFO Remuneration

Tesco's chief financial officer, Alan Stewart, meanwhile, earned a total of £2.56 million for 2018/19, which included a base salary of £750,000 and a bonus of £834 million.

This is also down from the previous year's earnings, in which Stewart earned £2.9 million.

Tesco's non-executive chairman John Allan earned £663,000 in the year, the report said, while senior independent director Deanna Oppenheimer took home £174,000.

Other non-executive director remunerations in the report included Mark Armour (£86,000), Melissa Bethell (£33,500), Stewart Gilliland (£71,500), Steve Golsby (£112,000), Byron Grote (£129,000), Mikael Olsson (£103,000), Simon Patterson (£86,000), Alison Platt (£86,500) and Lindsey Pownall (£114,000).


'Remained Unchanged'

Commenting on the directors remuneration, Tesco said, 'Between 2015/16 and 2018/19, we have invested significantly in pay for our customer-facing colleagues, and the hourly rate for UK store colleagues has increased by 14%. Over the same period, the base salaries of Dave Lewis and Alan Stewart have remained unchanged.'

It added that bonus awards to executive directors are 'linked to performance, and the Committee remains sensitive to the views of investors and stakeholders, particularly regarding restraint when determining the potential size of awards'.

© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.

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