Bonus hits Tesco CEO’s pay

Tesco chief executive Dave Lewis took a 10% pay cut last year after receiving a lower annual bonus, but the chief executive still received £4.1 million.

The figure – comprising salary, bonus, benefits and pension – compares to £4.6m in 2015, when Mr Lewis’s pay packet was boosted by a £3m bonus.

However, that slipped to £2.36m in the 2016-17 financial year, according to Tesco’s annual report.

The bonus is linked to targets such as sales, profits and individual objectives.

Mr Lewis’s base salary remained unchanged at £1.25m, while he received £223,000 in benefits and a £313,000 pension contribution.

The chief executive has been hailed for leading a turnaround of the supermarket since taking the helm in 2014.

Last month Tesco reported its first annual increase in UK sales for seven years, with operating profits rising 30% to £1.28 billion, while group revenues increased 3.7% to £55.9bn.

However, the firm has also been stung this year by a £235m hit after reaching an agreement with authorities over its 2014 accounting scandal.

The supermarket is also grappling with investor pressure over its £3.7bn takeover tilt for food wholesaler Booker.

Tesco chief executive Dave Lewis received £4.1m last year.