Tesco Bank lending up as group boss comes to defence of Higgins

The news came as the challenger bank’s chief executive Benny Higgins had to be defended by the retail group’s boss, Dave Lewis, over a controversial taxi habit, at a stormy shareholder meeting that highlighted the disparity between executive and shopfloor pay.

In May, The Guardian newspaper revealed Higgins, had spent more than £18,000 on London taxis in just eight months last year on trips to upmarket restaurants, private members’ clubs and the supermarket’s various head offices.

Shareholders had been told that bosses were “encouraged” by the business’ progress in a challenging market as it reported a second consecutive quarter of higher sales.

In a trading statement, the supermarket said its UK like-for-like sales were up 0.3 per cent in the 13 weeks to 28 May.

For the group as a whole, including its businesses in Ireland, the European mainland and Asia, the rise was 0.9 per cent.

However, shareholder Danny Gazzi said he was pleased staff and executives had received bonuses for returning the company to profit, but added: “It is notable however that while Dave Lewis is being awarded a 250 per cent bonus, staff are receiving 5 per cent.” Lewis was paid £4.6m including a £3m bonus last year.

“The £18,000 claimed just on taxi expenses in eight months by Benny Higgins as chief executive of Tesco Bank is a troubling contrast with the salaries of those on the shop floor,” added Gazzi who is also a supporter of ShareAction, which campaigns for the wider adoption of the voluntary UK living wage, as advocated by the Living Wage Foundation.

Lewis told the meeting on Thursday that Higgins’s expense bill was a “large amount of money” and had been reviewed in detail with the executive, who is in charge of the Edinburgh-based bank and regularly in London for business.

Tesco had replaced a car service with a taxi contract and Lewis said the spending was within company policy.

Mr Lewis added: “We have a way to go to reduce the cost of transporting colleagues around London when they are here on bank business.”