Tesco boss Dave Lewis lands £4.6m ‘smaller’ pay packet

The pay packet is 226 times the median wage of a Tesco employee, at �20,364
The pay packet is 226 times the median wage of a Tesco employee, at �20,364
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Tesco top boss Dave Lewis has picked up a £4.6 million pay packet, just months after 9,000 jobs were put at risk.

Mr Lewis earned a £1.6m bonus, on top of his £1.25m base salary and £1.3m through the company’s long-term share plans, Tesco’s annual report revealed.

He also earned £313,000 in pension earnings as well as benefits, during the year. The pay package will be scrutinised at the company’s AGM next month.

His pay packet is 226 times the median wage of a Tesco employee, at £20,364, the report added.

This comes months after Tesco announced in January that up to 9,000 jobs are at risk across its head office and stores as part of a major cost-cutting drive.

Britain’s biggest supermarket chain recently beat forecasts to report a 28.8% rise in annual pre-tax profits to £1.67 billion last year, while revenue grew 11.2% to £63.9bn.

The chief executive, who joined Tesco in 2014 from consumer good giant Unilever, hailed the company’s progress and said he is confident it will complete its turnaround goals by the end of the current financial year.

However, Mr Lewis’s pay represents a fall from last year, when he received a £5.1m package on the back of a significantly higher bonus payment.

The annual report also showed that chief financial officer Alan Stewart has received a total pay packet of £2.6m for the year, buoyed by a £834,000 bonus.

As part of efforts to position Tesco to meet the challenges of a rapidly changing market, last year Mr Lewis forked out £3.7bn to acquire cash-and-carry business Booker and launched Jack’s, a discount chain that will supposedly rival the German discounters.