Asda entices new boss with £10m pay package
Mohsin Issa could reportedly reward the new boss of Asda with a total pay package of up to £10m, as the billionaire businessman rushes to find someone to take charge of the supermarket.
Sources told The Telegraph, a hefty sum of between £8m and £10m has been floated in a bid to end the supermarket’s hunt for a new chief.
A senior industry source said: “There’s always been a very attractive offer for [the Asda] job in terms of financials and they interview lots of people the first time around.
“The issue has quite simply been working with Mohsin Issa and that hasn’t been overcome to date.”
Moshin has been overseeing the business since 2021 after the departure of Roger Burnley. Previous attempts to find a new chief failed in 2022.
Asda said on Friday it was “undertaking an extensive international executive search to find a permanent CEO”.
It came after Zubar Issa, the other half of the billionaire Issa brothers revealed he had sold his stake in Asda to TDR Capital, the private equity giant the pair partnered with to secure its £6.5bn takeover in 2021.
Mohsin Issa will remain a co-owner of Asda alongside TDR Capital. The move means that the private equity giant now has a stake of 67.5 per cent in the supermarket while Mohsin Issa will hold 22.5 per cent.
A further 10 per cent is held by the former owner of Walmart. The deal is expected to complete in the third quarter of 2024.
Zuber Issa, who is the co-CEO of EG Group, said at the time: “Since Mohsin and I, alongside TDR, took ownership of Asda, we have driven a period of significant investment and entrepreneurial growth activity.
“Notably, Asda acquired a market-leading UK convenience retail and foodservice store business from EG Group.”
He added: “With the divestment of my Asda shares, I will now turn my attention towards leading and managing the remaining EG UK forecourt sites that I have personally acquired, and spend more time on my charitable endeavours.
“I am pleased to see TDR increasing its investment in Asda. With Mohsin and TDR’s ongoing focus and shareholding, I am confident that Asda will achieve its growth ambitions.”
City A.M. has contacted Asda for a comment.