Tesco chief’s pay more than doubles to nearly £10m

Tesco boss Ken Murphy has seen his pay deal more than double to almost £10 million for the past year.

It means the chief executive has been paid 431 times the wage of the average Tesco worker – £23,010.

The supermarket giant’s annual report revealed Mr Murphy received a pay package worth £9.93 million for the year to February.

It compared with a £4.44 million total pay deal for the previous financial year.

Tesco chief executive Ken Murphy
Tesco chief executive Ken Murphy has seen his pay deal soar (Ben Stevens/Parsons Media/PA)

This PSP payment will be paid out in Tesco shares and is based on the company’s performance since 2021.

It comes on top of an annual salary of £1.64 million and annual bonus of £3.38 million.

Meanwhile, the group’s chief finance officer, Imran Nawaz, also saw his annual pay package more than double.

He received a total pay deal of £4.95 million for the year, jumping from £2.27 million in the previous financial year.

It came after Tesco last month posted an adjusted operating profit of £2.83 billion for the year to February, up almost 13% on the previous year.

However, the retailer came under criticism at the time for revealing the bumper profits when many customers had been impacted by rampant food and drink inflation, which soared in the face of supply chain disruption and the Russian invasion of Ukraine.

Sir Robert Goodwill, chair of the Environment, Food and Rural Affairs Committee, which is holding an inquiry into supply chain fairness, said Mr Murphy’s pay was “excessive” in light of what MPs have heard from farmers and suppliers about the power imbalance they face with supermarkets.

“And given what they have been saying about helping consumers with the cost-of-living crisis, their big increase in pre-tax profits and this doubling of the chief executive’s salary tells a very different story,” he added.

Alison Platt, chairwoman of the Tesco remuneration committee, said: “This pay award reflects the fact Tesco has delivered for all of its stakeholders over the last year – from its most competitive-ever customer offer, to its record investment in colleague pay.

“It also recognises the strong performance of the business while at the same time reflecting the complexities of managing a business of the size and scale of Tesco.

“A large proportion of the total package has been achieved because the business met stretching targets in a highly competitive sector and worked to create value for customers, colleagues, suppliers, communities and shareholders.

“Tesco remains committed to a competitive and fair reward package for all colleagues and over the last two years we have invested more than £800 million in colleague pay, as well as significantly enhancing the range of wellbeing benefits we offer.”

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