Tesco's falling share price eats away at Dave Lewis and Alan Stewart's bonuses

 
Catherine Neilan
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Dave Lewis: Set to receive £3.8m in shares over the next three years (Source: Getty)
Here's another reason for Dave Lewis to be concerned about Tesco's tumbling share price - it's already cost him around a quarter of the bonus accrued at his previous employer Unilever.
Tesco bought out awards that both Lewis and new chief financial officer Alan Stewart forfeited from leaving their previous employment, which in the case of Lewis was Unilever while for Stewart it was Marks & Spencer.
The two men started at Tesco earlier than contracted because of the problems emerging at the troubled supermarket.
Lewis has been granted around 1.66m Tesco shares, which will vest annually over three years from next February.
The average market price for the four dealing days after Lewis joined on 1 September meant they were worth 230.36p when he joined - around £3.8m - but in today's money are worth more like £2.8m.
Meanwhile Stewart, who joined after the profits overstatement had been discovered, received 882,000 shares initially priced at 191.69p each, equivalent to £1.7m.
His package is now worth £1.4m, though it will be boosted by a further award next summer to reflect the bonus he would have received for the 2014/15 financial year.
Tesco's share price was down 0.5 per cent at pixel time to 168p, though it had fallen as far as 166p in mid-morning trading.
A statement issued to the market today said:
The remuneration committee believes that these awards fairly reflect the awards the Directors forfeited on leaving their previous employment in terms of value and timescale of vesting.

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