Tesco CEO gets record £6.42m pay package
Tesco chief executive, Dave Lewis's annual pay package for 2019 hit £6.42m, marking the biggest ever haul for any executive at the retailer of the past decade.
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His total pay rose by more than a third last year, thanks to a leap in annual and long-term bonus payouts.
Lewis, who was set to leave the supermarket in September, received a £2.4m annual cash bonus and another £2.4m long-term share bonus on top of £1.6m in basic salary and benefits.
The long-term share bonus was bolstered by £1.6m based on Tesco’s share performance against rival retailers which improved once the supermarket decided to remove Ocado from the list of rivals.
A note in Tesco’s accounts said: “As Ocado has seen a significant shift away from being a retail-focused business towards a technology-focused business during the performance period, the [remuneration] committee decided to remove Ocado from the [total shareholder return] benchmark from 16 May 2018. This was the date on which a clear pattern emerged of Ocado pursuing a technology strategy.”
Lewis will be succeeded by the Boots executive Ken Murphy in September.