Tesco chairman John Allan today declared the retailer was “back on track” as its annual report flagged up record availability and a return to profit as two of the reasons to justify a massive pay injection for CEO Dave Lewis.
Allan said there had been improvement “across the business”.
“I’m pleased to say that these are very much on track,” he said. “Through making some difficult decisions and putting the customer at the heart of all we do, we are rebuilding the business.”
Tesco posted a £162m profit for the year to 27 February, following the £6.3bn loss for the previous 12 months.
Lewis added in the report: “As well as investing in lower, more stable pricing and improved service and availability, we have reviewed and simplified every one of our food ranges and added thousands of extra colleague hours on the shop floor to improve customer service. On-shelf availability has reached record levels, ensuring customers can get what they want, when they want it.”
The comments came after it was confirmed Lewis landed a near £3m bonus for getting the retailer back on the front foot.
Former Unilever boss Lewis, who was parachuted in by Tesco nearly two years ago, received a package worth a total of £4.63m.
Lewis did not get a bonus in 2014/15, though he did receive a £3.3m golden handshake in lieu of shares forfeited when he left his old employer.
His base salary rose by £500,000 to £1.25m and his pension contribution rose £170,000 to £313,000.
Earlier this year, Tesco announced a 3.1% increase in basic pay for staff - nearly 250,000 employees - but the new deal also included cuts to holiday and night-time bonuses.
In a video released with the annual report, Lewis said it had been “a good start in difficult circumstances” to the year.
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