Tesco boss paid £4m as staff benefits cut


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The Independent Online

Tesco’s chief executive Dave Lewis is in line for a contribution to his pension of £313,000 this year as he plans to cut pensions for his staff.

The supermarket giant’s annual report shows Mr Lewis will get 25 per cent of his salary as a pension contribution this year despite one of his first decisions in the job being to close the company’s defined benefit scheme, which guarantees a pension based on earnings and length of service.

Meanwhile, it emerged that former chief executive Philip Clarke was paid £764,000 last year, and that Tesco continued making payments to him until February despite the fact that he stepped down in September.

The company confirmed it would “seek recovery” of the £1.2m it paid Mr Clarke as a termination payment if it is proved that he committed any gross misconduct surrounding the company’s £263m accounting scandal.

Mr Lewis’s total pay for last year came to £4.1m despite the fact that he only arrived in September, £3.3m of which came from paying for the bonuses he would have received from his former employer, Unilever.

Accounts for BT showed its chief executive, Gavin Patterson, got a 5.5 per cent pay rise last year, taking his total package up to £4.8m.

The increase came for a year in which BT increased pre-tax profits by 14 per cent to just over £1bn. A spokesman said: “This is considerably less than the maximum he could have received due to the stretching targets that were set.”