Tesco chief executive Dave Lewis received a smaller pay package last year despite making significant progress on the grocer’s turnaround plan.
Lewis led Tesco to its first like-for-likes rise in seven years last year but Lewis was paid £4.15m in total, 10% less than in the previous year.
The grocery giant reported surging profits as it performed ahead of its turnaround plan, posting group operating profit before exceptions of £1.3bn, up 29.9% at actual currency rates, on sales ahead 4.3% to £49.9bn.
Like-for-likes at Tesco’s UK division increased 0.9% while food like-for-likes were up 1.3%.
The grocer’s annual report revealed that the fall in Lewis’ pay package was due to a smaller bonus payout of £2.4m, down from £3m.
Lewis’ annual salary remained unchanged at £1.25m and will be the same this year.
Tesco remuneration committee decided Lewis’ bonus based on his stretch targets, deciding to pay out 75.6% of the possible £3m bonus.
Remuneration committee chair Deanna Oppenheimer said: “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.”