Supermarket giant Tesco is reportedly facing a shareholder revolt after the firm increased its executive bonuses by removing Ocado – an online grocer – from the list of competitors used to assess its annual performance.
CEO Dave Lewis was recently handed a £6.42m pay package for the year ending March, marking the highest ever annual pay packet in the company’s history. His pay increased by over a third last year and included a £2.4m annual cash bonus and another £2.4million long-term share bonus. This is all on top of his £1.6m basic salary.
If Ocado had remained on a list of competitors, Tesco’s would have underperformed by 4.2% – which would have reduced Lewis’ bonus to £800,000.