The chief executive of Tesco’s pay package doubled in the 2023/24 financial year to almost £10 million, it was reported on Tuesday.
Ken Murphy’s pay package increased dramatically as customers struggled with high inflation and the cost of living.
Tesco’s annual report, published on Tuesday, showed that Murphy was paid £9.93 million in the year to 24 February 2024.
This was up from £4.44 million in 2022/23.
The package was made up of fixed pay of £1.64 million, an annual bonus of £3.38 million and a Performance Share Plan (PSP) pay out of £4.91 million.
Chief financial officer of the retail giant Imran Nawaz also received a pay package that more than doubled to £4.95 million.
‘Competitive And Fair Reward Package’
In a statement, Tesco said, “A large proportion of the total package has been achieved thanks to both Ken Murphy and Imran Nawaz achieving stretching targets in a highly competitive sector and working to create value for customers, colleagues, suppliers, communities and shareholders.”
It added that it “remains committed to a competitive and fair reward package for all colleagues.”
The retailer noted it had invested a record £300 million in pay rises for UK hourly-paid workers, and increased staff benefits.
UK shoppers saw inflation reach a 45-year high of 19.2% in March of 2023.
It had fallen significantly to 4% in March of this year, according to official data.
Market Leader
Last month, Tesco reported an 11% rise in annual profit to £2.76 billion as it won market share.
The retailer is currently the top UK supermarket group by market share, and the number-two in Ireland after Dunnes Stores.
It forecast further growth in 2024/25, and its shares are up 15% year-on-year.
Investors will vote on Tesco’s annual pay report at its annual shareholder meeting on 14 June.
Research from last August shows the bosses of Britain’s largest companies saw their pay jump 16% in 2022.
This sent their average earnings to 118 times the median UK full-time workers while employees struggled with soaring inflation.
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