Following on from yesterday’s article, Tesco’s latest annual report released today confirms that its Chief Executive Dave Lewis has received a bonus of just under £3m after hitting most of the group’s performance targets last year. Including his salary of £1.25m, benefits worth £80,000 and a pension contribution of £313,000, Lewis took home a total of £4.63m during the group’s 2015/16 financial year, having the led the business back into profit.
CFO Alan Stewart, who joined Tesco in 2014 from Marks & Spencer, was awarded a bonus of £1.61m on top of his £750,000 salary. Including benefits and pension contributions, his total pay was £2.59m.
The company also confirmed that its employees below senior management will be awarded a one-off ‘turnaround bonus’ in the form of shares up to the value of 5% of their salary.
In a video accompanying the release of the annual report, Lewis said the group had made significant progress in the key turnaround priorities for the business – see below:
More importantly, Tesco’s latest Annual Report indicates that:
- Tesco Group sales £54.4bn vs. Inventories of £2.4bn suggest a stockturn of 22.6 times/annum. Given your twice weekly delivery, and assuming smooth sell-through, has to suggest your SKUs are turning 100 times /annum, thereby driving Tesco stockturn…!
- Tesco UK sales of £37.2bn vs. UK sales area of 41.5m sq. ft. showing selling intensity of £900/sq. ft./annum. Calculating your SKU footprint (Average number of facings x number of units of facings backup on shelf x numbers of stores stocking) and then dividing the result into Tesco sales of your SKU per annum, has to show that your SKU is generating sales per sq. ft. of at least 2x Tesco average…
Just two ways of demonstrating your value in negotiation…