Tesco share price: Senior executives poised for £25m windfall

on Jul 28, 2015
Updated: Oct 21, 2019

Tesco (LON:TSCO) is reportedly poised to reward its senior executives with a £25 million windfall in two different schemes. The UK’s largest retailer revealed in a statement yesterday that the group’s eleven board members stand to pocket £16.9 million of shares in July 2018 if specific targets are achieved as part of its Performance Share Plan. Tesco’s chief executive, Dave Lewis, could receive 1,566,987 share options priced at 219.37p, which would be worth £3.4 million, while finance director Alan Stewart and UK boss Matt Davies are in line for £1.8 million and £1.5 million, respectively.

A second scheme, known as its Long Term Incentive Plan, would reward nine executives in July 2018 if they hit set targets. This will pay out shares worth a potential £7.9 million with Davies in line for a further tranche, worth £1 million.
The planned rewards are likely to infuriate investors who have seen their holdings fall by nearly a fifth over the past 12 months, as the company recorded an annual loss of £6.4 billion last year. Bets that Tesco’s share price will fall further are even higher than levels seen during the grocer’s accounting scandal last September. According to research company Markit, short-sellers have been upping their positions in Tesco in recent weeks and have hit a 3½-year high, with 3.5 percent of shares short.
Today, Tesco’s shares have been trading in negative territory. As of 10:45 BST, the stock was changing hands at 213.30p – 0.47 percent down intraday. Rival ‘big four’ grocers Morrisons (LON:MRW) and Tesco (LON:TSCO) were also in the red in advance of closely followed industry figures from Kantar Worldpanel today.
As of 11:12 BST, Tuesday, 28 July, Tesco PLC share price is 213.13p.

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