Controversial Payout Amid Tax Break and Rival Changes

  • Tesco CEO Dave Lewis receives £6.42m pay package
  • Includes £4.8m in bonuses
  • Pay increased due to annual and share price bonuses
  • £635m dividend paid to shareholders despite tax break
  • Tesco’s chairman defends decision as ‘right thing to do’
  • Long-term share bonus boosted by removing Ocado from rivals comparison

Tesco CEO Dave Lewis has been awarded a £6.42 million pay package, including £4.8 million in bonuses. This is an increase of over a third from his previous pay due to an increase in both annual and share price bonuses totaling £2.4 million each. Despite Tesco’s £585 million tax break, the company defended its £635 million dividend payout to shareholders last month. The final dividend of 6.50p on April 8th brought the full-year dividend to 9.15p. According to the Guardian, Tesco chairman John Allan justified the decision as necessary after shareholders supported the company through a five-year accounting scandal. Lewis’ payout has been met with controversy as his long-term share bonus was increased by removing Ocado from the comparison set of rivals, adding an additional £1.6 million to his total. Steve Golsby, remuneration committee chair, explained that they considered all factors and removed Ocado from the benchmark on May 16th, 2018 due to its shift towards a technology-focused business.

Factuality Level: 9
Factuality Justification: The article provides accurate and objective information about Tesco CEO Dave Lewis’s pay package, including bonuses and reasons for the increase. It also explains the decision to remove Ocado from the benchmark and justifies it based on changes in the retail landscape.
Noise Level: 3
Noise Justification: The article provides relevant information about Tesco CEO’s pay package and the reasons behind it, but it could benefit from more context or analysis on the broader implications of executive compensation in the retail industry.
Financial Relevance: Yes
Financial Markets Impacted: Tesco’s shareholders and competitors such as Ocado
Financial Rating Justification: The article discusses Tesco CEO Dave Lewis’ £6.42m pay package, including bonuses, and the decision to remove Ocado from its set of rivals for determining long-term share performance, which impacts financial markets and companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the text.

Reported publicly: www.retailsector.co.uk