Tesco boss Dave Lewis sees bonuses slashed

Tesco boss Dave Lewis sees bonuses slashed

Tesco boss Dave Lewis saw his bonus for 2016/17 fall, despite the company’s turnaround and “a year of strong progress”.

The retail giant’s annual report showed that Mr Lewis’ bonus totalled £4.1m, £500,000 less than last year’s total. Finance chief Alan Steward also saw a drop in his bonus, with it falling to £1.2m.

The cuts come in the same year as Britain’s biggest retailer saw its annual sales increase for the first time in seven years.

Despite this sales increase, the company’s profits were hit by fines and other costs coming from investigations into Tesco’s mis-represented profits scandal.

Lewis has sold off a number of Tesco’s subsidiary companies, trimmed management and streamlined stock in order to turn the company around.

The supermarket now face new challenges however, as they will need to grow sales and profits in an environment of almost unprecedented consumer squeezing, which comes mostly as a consequence of last year’s Brexit vote.

There is also expected to be widespread investor opposition to the planned takeover of Booker, said to be worth around £3.7bn.

Tesco offer bonuses based on performance, with increasing amounts for meeting sales and profits targets.

Away from their bonus payments, Tesco has seen its share price rise 13 per cent in the last 12 months.