Tesco CEO Dave Lewis gets a £2.3 million bonus -- but its less than last year

LONDON — The CEO of Tesco saw his total pay package fall be £500,000 last year, with sales not quite strong enough for him to earn his full bonus.

Dave Lewis’ total remuneration for 2016/17 was £4.1 million, compared to £4.6 million in 2015/16. The figures are disclosed in Tesco’s annual report, published on Friday.

Lewis’ base salary remained unchanged at £1.25 million and pension contributions were also steady at £313,000. Benefits jumped from £80,000 to £223,000. However, the Tesco CEO’s annual bonus fell from £2.9 million to £2.3 million.

Tesco’s annual report shows the fall in bonus was down to sales. The supermarket reached its target of at least £48.1 billion in sales from continuing operation (it reported £48.2 billion) but it would have had to hit £48.6 billion for Lewis to receive his full bonus.

Deanna Oppenheimer, the chair of Tesco’s remuneration committee, writes in the annual report: “Tesco has had a year of strong progress, delivering against the three turnaround priorities of improving competitiveness in the UK, a more secure balance sheet and rebuilding trust, which were set in 2014.

“A stable platform has been established and a strong performance delivered in spite of significant external challenges, which made 2016/17 another challenging year for retailers.

“As a result, the Committee determined that 75.6% and 74.2% of the maximum bonus opportunity should pay out for the Group Chief Executive and Chief Financial Officer, respectively.”

CFO Alan Stewart took home £2.2 million in 2016/17, including a £1.2 million bonus. He made £2.5 million in 2015/16 when his bonus was £1.6 million.

Tesco reported revenue up 3.7% to £55.9 billion for 2016/17, with profit before exceptional costs of £1.28 billion. The supermarket is currently in the midst of a multi-billion pound merger with food wholesaler Booker, Lewis’ first major M&A deal since taking the reigns at Tesco in 2014.

More from Oscar Williams-Grut:

NOW WATCH: SCOTT GALLOWAY: Stop blaming Amazon for killing retail

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.