Dave Lewis has been awarded a £3m bonus after successfully leading Tesco through the darkest time in its history.
Lewis joined Tesco ahead of schedule in September 2014, right in the midst of an accounting scandal which saw Tesco’s renown plummet. He subsequently oversaw a strategy to revive the retailer’s fortunes, rubber stamping the sale of Homeplus, closing unprofitable stores, cutting planned developments and axing a number of management positions at the chain’s headquarters.
In April 2015, Tesco posted a £6.4bn loss: the biggest in its history. A year later, the grocer boasted pre-tax profits of £162m for the 12 months to February 2016, and all 265,000 of Tesco’s employees are set to be rewarded from a £185m bonus pot.
Lewis’s bonus is 50% based on sales performance, 30% on profits and 20% on “individual measures” related to other operations and strategic goals, with the potential for a 250% bonus on his £1.25m-a-year salary.
During his tenure Lewis has overseen investment in Tesco’s grocery offering, as well cost-cutting measures such as more focused advertising, with reduced promotional activity targeted at more carefully selected items. An additional 9,000 shop floor staff were hired, with Tesco firmly denying a claim by the Guardian that staff numbers would be cut as part of Lewis’ strategy.
Tesco is set to releases its first quarter trading statement in June.