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CEO pay package questioned

Tesco posts 10th quarter of expansion

TescoBritain’s biggest supermarket has posted another quarter of growth with group sales up 1.8% in the 13 weeks to 26 May and UK sales up 2.1%.

Tesco, which is in the midst of a major turnaround, said it was its tenth consecutive quarter of expansion.

The company, which in March completed the £4 billion purchase of wholesaler Booker, holds its AGM later and some investors are likely to vote against CEO Dave Lewis’s pay packet. He took home almost £5m last year, which some have called excessive.

Emma-Lou Montgomery, associate director from Fidelity Personal Investing, said: “Forget the “threat” of the Sainsbury’s/Asda merger, the strong performance from the recently-acquired Booker wholesale business suggests Tesco has its eye on far bigger fish. Namely, taking on retail behemoth Amazon.

“Pile ‘em high, sell ‘em cheap” was the motto Tesco was founded on and that healthy 14.3% rise in like-for-like sales from Booker, shows the UK’s largest supermarket chain has no desire to relinquish its title any time soon.”

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