So CEOs are worth it then?

‘Tesco could have gone under’: how Dave Lewis saved the firm from disaster

Presumably the Observer will now be campaigning for higher CEO pay.

If one individual has saved tens of thousands of jobs and billions in capital value then paying him 0.1% of that capital sum is a bargain?

13 thoughts on “So CEOs are worth it then?”

  1. So long as it wasn’t fuckwit CEO’s and their henchmen who put Tesco there in the first place.

    Since it likely was–no –just his ordinary wages. More than ample.

  2. I love that story of him taking the execs to norfolk on a self catering hol. I can imagine the finance director thinking eff this for a lark, i just do the books, i could be in quaglino’s FFS.

  3. @Mr Ecks

    It was a combination of previous CEO not being great and FD cooking the books to the tune of £350 fake profit

    Patisserie V x 15

  4. Being the Observer it has, of course, got a lot of facts wrong. Dave Lewis didn’t take over from Terry Leahy and at the end of Terry Leahy’s term, Tesco was only moderately indebted (unless you include the liabilities but not the assets of Tesco Bank) with net gearing (net debt/equity) of 51% and interest covered 7.9 times by pre-interest profits.
    Secondly customer satisfaction is way down during Lewis’ term of office – the range of goods is reduced, out-of-stock of what’s left is far too frequent, the deli counters have been closed – Tesco is stupidly imitating Aldi and Lidl instead of differentiating itself from them.
    But then, Observer …

  5. Bloke in North Dorset

    “ out-of-stock of what’s left is far too frequent”

    And from 1sr Nov, if all goes well, these wii be front page headlines and leading the news broadcasts as being the fault of no deal Brexit.

  6. So how come that argument didn’t work last potential employer i pitched it to? “I can get your stuff on market much faster than industry standard, see track record, every day on market is squillions in sales, so pay me half the usual salary, plus 1% of squillions.”

  7. So how come that argument didn’t work last potential employer i pitched it to?

    Racism, probably.

    (Isn’t that now the first excuse of the unsuccessful?)

  8. @Pcar October 6, 2019 at 7:02 pm

    £350 Million not £350

    Stock levels: Tesco on Sunday 6th @ 18:00 – lots of empty with “Next delivery expected 6 October”, some out of stock > 2 weeks now

    What is going wrong with big five food distribution?

  9. Just in time logistics.

    It’s more essential than ever, in this era of negative interest rates, not to have capital tied up in stock.

    [/irony]

  10. @BiG

    irony – yep

    Interest rate in UK is +0.75%, not -0.4%

    Negative interest rate in Euro Zone should encourage stock building/holding vs cash in bank

    Empty shelf = no sale

    @Tim W

    Do some digging on Supermarket Empty shelf issue, been going on for over a year now, but worsening.
    eg
    Tesco Sun 29 Sept – no white sugar – only brand Silver Spoon (British Sugar)
    Morrisons Wed 2 Oct – low stock white sugar – only brand Silver Spoon (British Sugar)

    Last year Tesco sold Tate & Lyle white sugar

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